The Importance of Adequate Commercial Auto Insurance
If your business relies on vehicles for the daily operations of your organization then you need to understand the importance of commercial auto insurance. Whether you have a single work truck or a large fleet of delivery vehicles, the liability exposure is significant, and Commercial Auto Insurance can help protect your business.
What is Commercial Auto Insurance?
Commercial Auto Insurance covers legal bills, medical expenses, and property damage if a business vehicle is involved in an accident. In addition to vehicle protection, it also covers injuries to employees, injuries to other people caused by employees, and property damage.
This policy covers any vehicles your business owns, borrows, rents, or leases and covers vehicles your employees drive for both business and personal use, whether the vehicle is owned by the business or the employee.
What does it cover?
There is a variety of Commercial Auto Insurance coverage to choose from. A Commercial Auto policy typically includes coverages such as:
- Auto Accident Liability
- Physical Damage and Collision
- Medical Payments
- Uninsured Motorists
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Auto Accident Liability
Auto Accident Liability Insurance includes coverage that helps pay for any type of accident that was caused by your employees (the driver) if any damage is done to the individual that your employee hit, this coverage (AAL) will cover the cost minus a deductible.
Lastly, if your employee (the driver) is sued for any legal expense due to the individual they hit, the coverage will also cover those legal expenses.
Physical Damage and Collision
Physical Damage and Collision insurance will protect against vehicle theft and physical damage including vandalism, specific severe weather events, and impact with other objects.
For example, a tree falls on a company vehicle and shatters the windshield – that windshield will be covered.
Medical Payments Insurance
Medical Payments Insurance will help pay for your employee (the driver) or the passengers’ medical bills if they are injured in a vehicle accident. This specific coverage is available to both parties regardless of who was at fault. Medical Payments coverage is also called medical expense cover or “med pay.”
Uninsured Motorist Insurance
According to a 2021 report from the Insurance Research Council, one in eight drivers in the U.S. is uninsured. Uninsured Motorist Insurance (UM) will pick up coverage if you’re hit by an individual that does not carry auto insurance. Also, this pertains to medical expenses as well. Uninsured Motorist insurance options vary widely by state including coverage options, available limits, and mandatory requirements.
Many policies even provide coverage for uninsured and underinsured motorists, providing an extra layer of protection.
Contact Us Today!
In conclusion, having adequate commercial auto coverage can be crucial to a business’s longevity. As your business evolves and your needs change, the team at SouthPoint Risk is available to help! Call us today at 615-356-3212 or complete an insurance quote form here for a free consultation.
MEET THE AUTHOR
Logan Martin
Risk Advisor, SouthPoint Risk
