What coverages are offered by business auto insurance policies?
Business auto policies offer diverse coverages, largely mirroring personal auto policies but with adjustments for commercial vehicles. Some coverages that policies typically have are:
- Bodily Injury Coverage: May guard against injuries sustained by individuals who are outside the business’s insured vehicle (i.e. pedestrians, other drivers and passengers).
- Personal Injury Coverage: May guard against injuries sustained by passengers within the business’s insured vehicles (i.e. driver and passengers).
- Property Damage Liability Coverage: May guard against damages to other parties’ property (i.e. other vehicles, and other types of property).
- Collision Coverage: May guard against damage to the business’s insured vehicle, when a result of accidents with other vehicles.
- Comprehensive Coverage: May guard against damage to the business’s insured vehicle, when the result of non-accident events (i.e. Animals, falling objects, fires, thefts, etc.).
- Uninsured and Underinsured Motorist Coverage: May guard against accidents involving drivers who are not adequately insured, and also hit-and-run accidents.
Which vehicles can be covered by business auto insurance?
Business auto insurance is generally available for whatever types of vehicles a business has. Cars, trucks and specialized vehicles (e.g. limos, herses, etc.) are usually easy to insure.
This isn’t to say that each business auto policy can cover all types of vehicles, but simply that there are plenty of options available. An insurance agent specializing in commercial auto can help businesses find the right policy.
How many vehicles can be insured under one commercial auto policy?
Commercial auto policies are available for a single vehicle, a few vehicles or large fleets. The number of vehicles being insured can affect what type of policy should be used, but a knowledgeable insurance agent will be able to recommend the appropriate policy type.
Do business owners need commercial auto when using a personal vehicle?
Self-employed business owners frequently use their vehicles for both business and personal use.
Some personal auto insurance policies may give adequate coverage for business use, either as a standard protection or an optional one. If suitable coverage isn’t available through a personal policy, a commercial auto one could be needed. It’s not normally needed for basic business use, however.