Property Damage Coverage For Commercial VehiclesProperty damage coverage is an integral part of a personal car insurance policy, and the same applies to commercial policies. In fact, many states require commercial policies to include property damage coverage.
This coverage type helps cover costs associated with damages to others' property resulting in an accident caused by the operation of your insured commercial vehicle. Read below to learn more about property damage coverage.
What Is Commercial Property Damage Coverage?
This type of commercial liability car insurance covers the physical damage inflicted on vehicles and other types of property by accidents caused by a driver of one of your commercial vehicles. In order for your liability property damage coverage to apply, the accident must have occurred when you or one of your employees was driving for business purposes.
Commercial property damage insurance can pay to repair or replace properties such as:
- Utility poles.
- Flag poles.
- Mail boxes.
Property damage insurance can also help pay your legal expenses if your company faces an accident-related lawsuit. However, do note that it will not cover bodily injury expenses.
NOTE: When purchasing this coverage, keep in mind that it does not cover your own property damage.
Combined Single Limits
Commercial liability insurance includes the following coverage types:
- Bodily injury coverage.
- Property damage coverage.
When purchasing liability insurance, you will likely find that limits are set separately for each type of coverage. However, several commercial car insurance companies sell a combined single limit, meaning both bodily injury coverage and property damage coverage are held to one limit that often equals or exceeds the combination of standard bodily injury and property damage limits.
Should You Buy Commercial Property Damage Coverage?
In most states, you won't have a choice: you'll be required to hold property damage coverage. Some businesses that transport goods or passengers across state lines may even be required by the federal government to have property damage coverage.
Even if purchasing this coverage is not a legal requirement, it's still worthwhile to have, considering the far-ranging protection it provides. However, for some sole proprietor operations, your personal property damage insurance might sufficiently cover you.
Speak with a commercial auto insurance agent with questions about the right policy for you.
How Much Property Damage Coverage Do You Need?
The amount of coverage you need will vary depending on a number of factors, including:
- The type and size of your business.
- The number of vehicles used by your business.
- The amount of your assets.
- The financial strength of your company.
If your state requires this type of insurance, you must at least meet their minimum limits. However, it is rarely a wise move to only carry the lowest required amount, as you may find your assets at risk in the case of an accident. In fact, some commercial auto insurance providers will only offer limits that exceed the state's minimum requirements for property damage coverage. It's best to consult with an insurance agent or another qualified financial professional to determine what's a sound amount for your company.
When you consider the appropriate limits for liability protection, consider that insurance becomes relatively less expensive as you purchase more. For example, doubling your limits won't double your premium.
For extra protection, you can complement your property damage policy with an affordable commercial umbrella policy that picks up after you've exceeded your commercial liability property damage limits.Compare Commercial Insurance Rates in 3 Steps
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