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What is Commercial Auto Insurance?

Commercial auto insurance, also referred to as business auto insurance, is a type of coverage that helps give the business liability and physical damage protection for vehicles that are used for business.  Vehicles could include cars, vans and trucks used for business purposes. Commercial vehicles require a separate policy because they’re typically exposed to more risk than personal vehicles, which can come in the form of accidents, injuries, property damage and more. This can include accidents, injuries, and property damage. Business auto insurance is important for businesses of all sizes, as it can help to protect the Small Business Owner from financial losses in the event of an accident.

What does Commercial Auto Insurance Cover?

Commercial auto insurance typically covers the following types of losses:

  • Bodily injury: Can help cover medical expenses, lost wages, and more that are caused by the business’s vehicle.
  • Property damage: This can help cover costs associated with repairing or replacing property damaged by a business’s vehicle.
  • Collision: This can help cover a business’s vehicle that is caused by an accident.
  • Comprehensive: This can help cover damage to the business’s vehicle that is caused by something other than an accident, like theft, weather damage, and more.
  • Liability: This can help cover legal expenses and damages caused by a business’s vehicle.

Who Needs Commercial Auto Insurance?

Commercial auto insurance should be considered if you are a Small Business Owner, especially if it has employees who drive for work. This includes businesses that have delivery drivers, service technicians, and salespeople.  It’s worth noting that commercial auto fills an important gap for Small Business Owners. Personal auto insurance generally wouldn’t cover a vehicle being used for business purposes, however commercial auto insurance can help provide protection for your vehicle for both commercial and personal use.

How Much Does Commercial Auto Insurance Cost?

The cost of commercial auto insurance varies depending on a number of different factors.  Size of business, business operations and the type of vehicles being insured are a few of the considerations that go into commercial auto insurance pricing. According to Progressive, a recognized leader in the commercial auto insurance space, insuring over 1.9MM commercial vehicles, the average commercial auto premium for their policyholders is $220 per month[1]

Why Do You Need Commercial Auto Insurance?

There are many reasons why you need commercial auto insurance. Some of the most important reasons include:

  • To protect your assets: If you are in an accident with your business’s vehicle, you could be held liable for the damages. Commercial auto insurance can help to pay for the damages and protect your assets, such as your business’s property and equipment.
  • To avoid bankruptcy: If you are in an accident with your business’s vehicle and you do not have commercial auto insurance, you could be forced to declare bankruptcy. This can have a devastating impact on your personal and financial life.
  • To comply with the law: In some states, businesses are required to have commercial auto insurance in order to obtain or maintain a business license.
  • To protect your reputation: An accident with your business’s vehicle can damage your reputation and make it difficult to attract new customers and clients. Commercial auto insurance can help to protect your reputation and your business.

Commercial auto insurance is an important type of insurance for businesses of all sizes. It can help to protect you from financial losses if you are in an accident with your business’s vehicle. If you are considering purchasing commercial auto insurance, be sure to compare rates from several different insurers to get the best possible deal.

Get a Commercial Auto Insurance Quote

It is important to work with an insurance expert to make sure you get the right commercial auto insurance for your business. At BuyLiability.com, we’ve ranked the best commercial auto insurance providers to help you find the best coverage for your Small Business.

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[1] https://www.progressivecommercial.com/commercial-auto-insurance/

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