Commercial auto insurance is a type of insurance that provides financial protection for businesses and organizations that own or operate vehicles. The coverage typically includes protection against losses or damage to the vehicle, as well as liability protection in the event that the policyholder causes an accident and injures or kills someone.
‍
Commercial auto insurance policies generally have several types of coverage: liability, collision, comprehensive, and medical payments.
‍
Liability coverage provides protection in the event that the policyholder causes an accident and is held responsible for any resulting damages or injuries. This can include coverage for property damage and bodily injury, as well as legal fees if the policyholder is taken to court.
‍
Collision coverage provides protection in the event that the policyholder's vehicle is involved in an accident, regardless of who is at fault. This coverage typically covers damage to the policyholder's vehicle, less the deductibles.
Comprehensive coverage provides protection against non-collision damage, such as fire, theft, or damage caused by natural disasters.
‍
Medical Payments coverage provides coverage for medical expenses for the driver and passengers of the policyholder's vehicle that are injured in an accident.
‍
Some commercial auto insurance policies may also offer additional coverage options such as, protection for towing and rental car, protection for custom equipment, or protection for non-owned vehicles.
‍
It's important for businesses to note that commercial auto insurance is different from personal auto insurance and it typically covers vehicles that are owned, leased or hired by the business. It also usually carries higher coverage limits, as the vehicles are more often used for business purposes and hence have a greater exposure to risk.
It's important for businesses to carefully review their policy to understand what is and is not covered, and to make sure that the coverage meets their needs. It's also a good idea for businesses to regularly review their coverage and update it as needed, as the nature of the business, the area of operation, the number of vehicles, and their needs may change over time.