How Does Commercial Auto Insurance Work?

If theres an accident a business auto insurance policy can assist with covering the costs of vehicle repairs or medical expenses for the driver involved. Your policys deductibles and limits will come into play for any claims that are covered. It’s advisable to discuss with your Safepro Insurance Services Business Insurance representative regarding the availability and requirements of coverage, in your state. Here are some common types of business auto insurance coverages;

 LIABILITY COVERAGE; In a business auto policy insurers provide two forms of liability coverage. Injury liability and property damage liability. Auto liability coverage is mandatory in every state. Bodily injury coverage is crucial if an employee driving a company vehicle causes an accident while property damage coverage can help with repair bills for drivers vehicles.

 COLLISION COVERAGE; Following a covered accident collision coverage can assist in repairing or replacing your company vehicle if its deemed totaled.

 COMPREHENSIVE COVERAGE; When damage occurs to your business vehicle due to incidents than collisions (like theft, fire, vandalism or hail) comprehensive coverage steps, in to cover the repair costs. For instance comprehensive coverage could help pay for repairs if your company car gets damaged by hail during a storm. When you have an accident involving a driver who’s uninsured or underinsured your insurance will protect you in situations. Your insurance company is responsible, for providing this coverage. If you choose not to purchase it you’ll need to sign a waiver acknowledging that the coverage was offered but declined.

Keep in mind that commercial auto insurance may not cover everything. Depending on your location there are claims and expenses that may not be included in your policy; instances where an employee drives a company vehicle medical costs unrelated to accidents, items inside your business vehicle (which can be insured separately through Inland Marine coverage) accidents caused by employees using vehicles for work purposes and rental car repairs while waiting for your company car to be fixed after an accident.

Upon purchasing auto insurance you will receive policy declarations outlining the choices you’ve made regarding deductibles, limits and optional coverage. It’s crucial to review this document as it determines what is covered and what isn’t. If you have any questions, about your policy declarations don’t hesitate to reach out to your insurance agent.