As a business owner, you will need commercial auto insurance to cover the cars, trucks, vans or other vehicles designed for use on public roads and used in your business; and these coverages will be similar to those that you carry for your personally-owned vehicles but with some important technical differences.
A separate policy is required for your business vehicle insurance since your Businessowners Policy (BOP) does not provide such coverage.
Most states require a company to carry liability insurance to cover property damage and bodily injury resulting from an accident occurring while you or an employee is driving on business. In addition, you might be required to have medical payments coverage (called Personal Injury Protection - PIP - in some states) and/or uninsured/underinsured motorists coverage. You might also consider carrying physical damage coverage for vehicles your business owns, leases or hires.
Typically, a commercial auto insurance policy allows for each vehicle you use in your business to be separately “scheduled,” or listed on your policy, meaning that you may select different coverages for each of your various vehicles, depending on its characteristics and the coverage you need for it.
Typical Commercial Auto Coverages
- Bodily Injury Liability - pays for damages involving physical injury to others for which you become legally responsible.
- Property Damage Liability - pays for damage to the property of others for which you become legally responsible.
- Medical Payments - pays for reasonable and necessary medical expenses and funeral services for those who are accidentally injured while in or getting into or out of your vehicle.
- Personal Injury Protection - Coverage for the insured including medical, hospital, rehabilitation, loss of wages or loss of services costs resulting from vehicle-related injury. In case of death, survivor benefits and death benefits will be provided.
Additional Commercial Auto Coverages
- Comprehensive - pays for damage to or loss of or a company-owned vehicle and its equipment resulting from any cause causes except collision, subject to the policy’s deductible.
- Collision - pays for the collision damage to a company-owned vehicle and its equipment, subject to the policy’s deductible.
- Uninsured Motorist – allows your recovery of bodily injury damages resulting from an accident when the other party is found legally liable and has no insurance.
- Underinsured Motorist - allows your recovery of bodily injury damages resulting from an accident when the other party is found legally liable but lacks adequate liability coverage.
- Additional Expense – covers the cost of necessary additional expenses such as lodging, food, rental vehicles, etc. incurred during a loss for which you are protected under collision or comprehensive coverage.
- Hired Auto Liability Coverage - covers liability for vehicles rented/borrowed/leased by the insured company.
- Hired Auto Physical Damage - pays for physical damage to a vehicle of any type that is rented/borrowed/leased on a short term basis for use in the insured's business.
- Employer's Non-Ownership Liability – covers liability for a private-passenger vehicle used in the business by any person, or the occasional and infrequent use of a company-owned automobile by any of your employees.
Not Sure if You Need Commercial Auto Insurance?
The decision depend on the kind of driving you do, how you use vehicles in your business, who will be driving them and whether employees will be driving their own cars for your business. Why not sit down with one of our experienced agents, here at Lindquist Insurance Associates Inc. who can help you explore the many options and decide what you need? Just contact us at your convenience.
Wondering if You Have the Right Commercial Auto Coverage?
A Lindquist Insurance agent in either Frederick MD or Annapolis MD can review your current policy with you to be sure you are receiving the best coverage for your needs at the best possible rate. Contact us anytime to arrange a no-obligation policy review.
The scope of your insurance coverage and options depend entirely upon the policy and the insurance company providing it. This website is not intended to advise, offer or bind coverage. You should always discuss your insurance issues with professionals such as a licensed and qualified insurance agent like those at Lindquist Insurance before making any decisions or choosing a course of action.