Commercial auto insurance is a policy you obtain that provides financial protection to a business when accidents occur when using a business vehicle. This policy can help in many situations. One key time it will apply is during instances of driver error. That is, when your driver is at fault for an accident, this type of coverage can protect your business. Here is what you need to know about this.
What Does Commercial Auto Insurance Cover?
The goal of commercial auto insurance is to minimize financial risk to your company when accidents or other losses occur related to your vehicle. Most policies, then, cover a variety of risks such as:
- Collision insurance and comprehensive damage coverage against damage to your car itself.
- Auto liability coverage to protect against claims from others of property damage or bodily injury that you might have caused them.
- Uninsured motorist coverage to minimize risks associated with damage to your car when someone else causes them, but lacks the appropriate insurance to repay you.
- Medical payments coverage for the driver and passengers (depending on the situation)
You can customize your policy to meet other needs as well. Commercial auto insurance needs to address auto-specific risks you face in the operation of your business. Be sure you choose a policy that is adequate. It needs to offer enough coverage for all of the potential risks your company faces each day as it operates on the roadways.
When the Driver Makes an Error
Let’s say your driver decides to change lanes and hits another driver in doing so. Maybe your driver fell asleep at the wheel and caused a wreck. There are situations in which a parking mistake can cause damage to a vehicle, too. In any situation like this, your policy should offer protection for:
- Claims made against your company by another person or property owner for their losses. Liability coverage pays for the damage your driver causes to other people.
- Certain injury claims associated with passengers in the vehicle, depending on the reason they are there.
- Damage to your vehicle itself, such as making repairs to the structure due to the incident.
Whether you have a small business or a large corporation, having adequate insurance is critical if you operate a vehicle. Commercial auto insurance needs to be there in case a driver makes any mistakes. The right plan, then, is there to pay for these types of unavoidable errors. Speak to your business insurance agent. Discuss the concerns you have. Then, select a policy that provides ample protection to minimize those risks.