Running a business involves facing numerous challenges, and managing risks is undoubtedly one of the most critical aspects of the equation, particularly when it comes to the vehicles used for business operations.
This is why adequate commercial auto insurance coverage is so important. The right policy can mean the difference between facing a minor setback and experiencing a significant financial disaster.
What is commercial auto insurance?
Commercial auto insurance serves a unique purpose compared to personal car insurance because it's specifically suited for vehicles used in business activities.
Whether they are company cars, delivery vans, trucks used for landscaping services, or even vehicles used for ridesharing purposes, these vehicles require more extensive coverage than a standard personal car insurance policy typically provides.
Commercial auto insurance offers the necessary protection to safeguard your business assets and minimize potential financial losses in case of accidents or other unforeseen events.
What does commercial auto insurance cover?
Commercial auto insurance covers the following:
Liability coverage: This is the core of commercial auto insurance, helping out if you or someone working for you causes an accident, also covering third-party medical bills and damage
Physical damage coverage: Think of this as protection for your business vehicle when it suffers physical damage from a crash, theft, vandalism, or severe weather.
Medical payments coverage: Medical coverage covers medical bills for you, your employees, and any passengers hurt in an accident, no matter who's at fault.
Uninsured/underinsured motorist coverage: The coverage applies if the third person who caused the accident is not insured or doesn't have an insurance package sufficient enough to cover the liability
What does commercial auto insurance not cover?
Although commercial auto insurance provides vital protection, it's crucial to know its limitations.
Personal vehicles used for work
Rented vehicles
Pollution
Deliberate property damage or bodily injury
Mobile devices
Do you need commercial auto insurance?
A commercial auto insurance policy is essential if you own a fleet of branded business vehicles registered in the business name.
Even if it's your car, but you use it for business purposes, you need the right commercial auto insurance policy. The same applies even if you don't have a car but rent one or more vehicles for commercial purposes, such as an outdoor advertising campaign.
How much commercial auto coverage do you need?
Different businesses have different needs, are exposed to various risks, and subsequently need varying levels of coverage.
Most insurance companies have a cap of $1 million for commercial auto insurance policies. However, if one of your vehicles causes severe bodily or property damage and you get sued for a large amount, $1,000,000 may not be enough.
To protect your business in such cases, you can buy an umbrella insurance policy to cover the amount above the limit set in your auto insurance policy.
How much does commercial auto insurance cost?
The cost of commercial auto insurance can vary depending on various factors, such as the types of vehicles you want to insure, how many cars you own, your driving history, the nature of your business operations, and the level of coverage you opt for.
As it's more expensive than personal insurance, businesses can expect to pay an average premium of $147 per month, or $1,762 annually. However, you’ll need to get a quote to know the exact commercial auto insurance cost based on your unique situation.
Protect your business on the road with commercial auto insurance
Commercial auto insurance is super important for businesses that depend on mobility. It protects your company and employees and prevents you from bearing the full brunt of unexpected liabilities.
Are you ready to ensure your business has the right commercial auto insurance? At Rolland Insurance Solutions, we will help you navigate the world of commercial auto insurance and find the perfect coverage for your needs. Get a quote today.