Helping Businesses Find the Right Insurance

6 Types Of Commercial Auto Insurance Coverages You Should Know

It is tempting to use your personal car when the business is still small, but this is a big blunder. It puts you and your business at risk of legal liabilities arising from car accidents. The disadvantage of using your car for business is that insurance is highly likely to decline any claims arising from what it deems as authorized activities.  Commercial auto insurance coverage is for the risks of a vehicle used in business activities.  It generally caters to bodily harm and property damage caused by a vehicle you use in business. Several covers are vital for any business:

1. Liability Coverage:

This commercial automotive insurance covers you and your employees, partners, or representatives from the liability of all third parties in the event of an accident. 

2. Comprehensive Coverage:

This is a specific coverage that is meant to protect the car's physical condition from damages caused by non-collision causes. It also encompasses damage from fire, theft, or vandalism, as it may occur when you are away from the car for a long time. 

3. Medical Payments Coverage: 

This will cover medical expenses arising from any injuries sustained in a car accident. Every driver and any passenger of a business car will be covered. An example would be an employee who is on the way to work when he/she is injured by a vehicle controlled by an uninsured driver. 

4. Collision Coverage: 

This commercial auto insurance cover caters to the damage to your car due to a collision, regardless of whether it was your fault or someone else's. It covers both the cost of repairing or replacing the damaged portion of your car, as well as liability that may arise from the incident.

5. Uninsured Motorist Coverage:

This covers you, your employees, agents, and any relatives of theirs against injuries sustained in an accident with an uninsured driver. It caters for medical bills arising from the incident. Your car insurance will offer this coverage as a mandatory component of basic coverage in most states. However, underinsured coverage is not compulsory, so you may have to buy it separately. 

6. Bodily Injury Liability Coverage:

This is similar to liability coverage. However, it covers cases where you are proven at fault for bodily harm or death. In addition, it allows you or your business to hire a lawyer to fight lawsuits that may arise from such an accident.

Are you worried about the risk exposure arising from your commercial fleet? To learn more information about commercial auto insurance, reach out to a company such as Contractors Insurance.