Commercial Auto Insurance: Running a business that involves the use of automobiles can be difficult, but having to deal with commercial automobile insurance can be more difficult, especially when you don't know which one to choose. One of the most difficult decisions you will make as a business owner is choosing the right insurance policy that can protect your business assets as well as your employees from unexpected financial loss and the threat of pursuit. The first step involved in choosing the right type of auto insurance is to understand the different types of commercial insurance coverage available.
Basically, commercial auto insurance divides vehicles into two broad categories
- Passenger-type private automobiles such as cars, vans, SUVs and small trucks
- Trucks, trailers and tractors which include pickup trucks, dump trucks, dry cargo, refrigerator box, auto transporter, tanks, etc.
There are two main categories of commercial automobile insurance: general insurance and specialized commercial automobile insurance.
General commercial auto insurance includes six types of coverage
- Full coverage: This type of protection comes into play when a vehicle is vandalized or suffers damage caused by something other than another vehicle such as a fallen animal or tree.
- Collision insurance: This type of insurance covers damage to a vehicle that is sustained when the vehicle is struck by another vehicle or object or the vehicle overturns. This type of insurance is highly required for vehicles with loans or rentals.
- Uninsured / underinsured motorist: This type of insurance covers damage and medical expenses caused by an accident caused by an uninsured or underinsured motorist.
- Liability insurance: This type of insurance is generally required by most states. It is triggered when you have caused an accident. It not only protects you from damage, but also provides you with a legal defense in case the other party takes legal action against you. "Liability for property damage" covers damage to the car or property of the other party while "Liability for bodily injury" covers injury or death caused by the car accident.
- Payment medical cover: This type of insurance covers medical expenses incurred by anyone in your vehicle due to a car accident, regardless of the fault of the accident.
- Injury protection: This type of insurance covers costs related to injuries incurred by you or your employees in the event of an accident, regardless of the fault of the accident.
Specialized commercial automobile insurance is intended for companies that require the use of specialized vehicles in the execution of their daily activities. Some common types of custom protections designed to protect specialty vehicles include coverage for food trucks, coverage of landscaping vehicles, and coverage of trade-related vehicles.
In conclusion, no matter what type of business you operate or what type of motor vehicle you use, a commercial insurance policy can be customized to meet your specific needs.
