Liability Insurance For Commercial Vehicles
What is Commercial Auto Insurance?
This protection covers the financial consequences caused by you or a company employee when driving a vehicle in a work capacity.
Commercial auto liability insurance comes in two primary forms:
- Bodily injury: Deals with the costs associated with human injuries.
- Property damage: Deals with the expenses associated with repairing or replacing property.
Liability coverage doesn't pay for damages caused to your own company's property (such as company cars or trucks) or injuries to your employees. Instead, it pays for the damages done to other people or properties.
Commercial auto insurance can cover an assortment of:
- Commercial vehicle types (such as cars, vans, and trucks).
- Driver backgrounds (clean driving record, inexperienced, etc.).
- Occupations (such as CDL holders, floral delivery drivers, couriers, and snowplow drivers).
Why Buy Commercial Auto Insurance?
In most states, you're required to have this type of auto insurance for your business. The coverage limits vary by state, but often equal the limits set for personal auto liability insurance.
Depending on the size and financial stability of your company, a single serious accident caused by an employee in a work capacity can put your company in jeopardy―especially if there's a lawsuit involved. Commercial insurance can help safeguard your business from this threat.
How Much Liability Coverage is Enough?
That's a question you should discuss with your insurance agent or company, or some other trusted source who is familiar with your business.
Again, though, this varies with the nature of your business, your assets, and how easily your business can absorb losses. Keep in mind, though, insurance protection becomes relatively cheaper the higher it goes. In other words, a million dollar policy won't be twice as expensive as a $500,000 policy.
And, you could purchase an umbrella policy―which is fairly inexpensive―for additional protection after your commercial auto policy leaves off.Compare Commercial Insurance Rates in 3 Steps
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