Who Requires Commercial Auto Insurance

By | December 30, 2011

In general, if your business owns or leases vehicles, then you need Commercial Vehicle Insurance, regardless of how many vehicles you have. Some insurance companies will not insure certain types of commercial vehicles like taxi, hazardous waste haulers, emergency vehicles etc, for such type of vehicles separate coverage is required.

Therefore, any company or the enterprise, that uses one or more vehicles during the course of business requires protection offered by Commercial Auto/Vehicle Insurance. Employed and self-employed individuals who use their own cars for business also need commercial insurance. Thus commercial auto insurance provides coverage for your business motor vehicles and drivers including yourself and your employees against injury, loss or damage to vehicles or cargo, as well as damage to other property.

Commercial Vehicle Insurance is similar to Personal Auto Insurance, but there are significant differences. Coverage limits are usually higher in this policy. This policy covers the following damages like:

  • You or one of your employees cause damage to others in an on-the-job vehicle accident.
  • The death or injury caused to the drivers due to the on-the-job collision.
  • Protects the motorist who is uninsured.
  • Damage caused by you or your employees to others vehicles or property.
  • Damage or loss to your business vehicles and cargo.

The main advantage of this additional liability insurance is that, most of the companies opt to purchase more liability insurance than the minimum required. The reason for this is that in case of a serious accident, the minimum is often not enough to cover all repairs and medical expenses. And the amount of liability insurance depends on factors like – nature of business, driving extent, etc. So, it is necessary to get a right coverage for your commercial auto vehicle.