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You probably have your own car and have personal auto insurance to cover collisions, injuries, and property damage. Commercial auto insurance (also known as commercial vehicle insurance) is just as important. It’s specifically designed for vehicles used for business purposes, including cars, trucks, vans, and other vehicles owned or leased by your business.
If your business relies on transportation, you need commercial vehicle insurance, whether you have one car or a fleet of trucks. Otherwise, your business could be liable for damages and injuries in case of an accident, which can be financially devastating.
Here are a few reasons why you would need commercial auto insurance:
It provides protection for your vehicles, your employees, and your business.
Peace of mind for potential auto-related incidents that are out of your control, for example, your delivery van fleet parks overnight in an uncovered lot and there is a damaging hailstorm.
You are protected even when your employees are at fault. For example, if a member of your sales team, while in your company car, misses a stop sign and hits another car on the way to a client site. The accident causes damage and bodily injury to himself and/or the other driver.
Peace of mind for potential auto-related incidents that are out of your control, for example, your delivery van fleet parks overnight in an uncovered lot and there is a damaging hailstorm.
You are protected even when your employees are at fault. For example, if a member of your sales team misses a stop sign and hits another car causing damage and bodily injury to himself and/or the other driver on the way to a new customer location to drop off a welcome basket in your company car (which is, of course, insured!)
Commercial auto insurance covers a wide range of risks your business faces. Here are just a few examples of the different coverage options available with a commercial auto policy:
Bodily injury & physical damage liability coverage is required by law and will protect you.
Collision coverage would help pay for the claim if you are a contractor and you hit another pickup truck in the hardware store parking lot.
Comprehensive coverage helps with anything unrelated to a collision, for example if some teenage kids thought it would be funny to spray paint your delivery vans.
Uninsured/underinsured motorist coverage protects you in the event that an accident occurs with another driver who doesn’t have proper insurance, for example, if a buzzed driver hits you while you were driving for a rideshare program picking up passengers on a Friday night, and that driver has no insurance.
You should know that different states have different commercial auto insurance requirements, as do different industries. Lean on an experienced insurance agent that is familiar with your state and industry to get the right protection.
Collision coverage
Comprehensive coverage
Uninsured/underinsured motorist coverage
The average annual cost of a commercial auto policy for a small business is around $1,800, but coverage costs will vary. Here are a few factors that can influence the price of a commercial auto policy for your business:
Though commercial auto insurance covers some of the most common vehicle risks, it doesn't cover everything. Here are a few other coverage options related to business vehicles:
Hired and non-owned auto coverage: for vehicles that are rented or employees using personal vehicles for work purposes. For example, if a few salespeople on your team do quarterly visits to onsite clients using their own cars and get reimbursed for mileage expenses, you need this coverage.
Passenger liability: for businesses that transport people.
Cargo liability: covers cargo, tools, equipment, or materials in transit.
Commercial trailer liability: for businesses with heavy equipment or trailers.
Peace of mind for potential auto-related incidents that are out of your control, for example, your delivery van fleet parks overnight in an uncovered lot and there is a damaging hailstorm.
You are protected even when your employees are at fault. For example, if a member of your sales team misses a stop sign and hits another car causing damage and bodily injury to himself and/or the other driver on the way to a new customer location to drop off a welcome basket in your company car (which is, of course, insured!)
Here are just a few other common examples of risks, coverages, and why you may need them to protect your business:
A general liability policy covers your business from financial losses and/or legal expenses resulting from any injury experienced by a customer or damage caused to your customer’s property.
A business owner’s policy provides comprehensive coverage by bundling general liability insurance, commercial property insurance, and business income interruption insurance into a single policy. This makes the insurance process easier and more affordable.
Workers’ compensation insurance protects employers and employees, covering financial needs in case of any workplace illness or injury. This insurance is required by law in most states.
Cyber insurance protects you against the consequences of a cyber incident, such as data breaches, network security failures, cyber extortion (like ransomware), and other cyber attacks.
Protects professional service providers when their advice or actions could have significant financial or health-related consequences.
By now you understand how important it is for your business to be properly insured. What’s next? Call (380) 225-5242 to connect with an experienced insurance agent who understands the nuances of your business and industry.
