If the success of your company depends on transportation in any capacity, then risk transfer should play a key role in your plan for long-term financial protection. Ensuring that you have the right commercial auto insurance coverage is not only crucial, but often required under the law.
An auto accident could be as minor as a parking lot fender bender or as major as a serious collision. The result of either one could be a financially crippling lawsuit or costly medical payouts. Consider the various types of commercial automobiles that need insurance:
- Vans, trucks and trailers – For businesses that use their own vehicles for deliveries or to provide services, proper coverage for both a single vehicle and an entire fleet is necessary.
- Tow/Dump trucks – Service trucks used for specific purposes such as roadside towing or assistance face a unique set of risks and therefore need unique coverage.
- Taxis or limousines – As a limo or taxi owner or operator, you are responsible for the well-being of your passengers. Commercial taxi insurance protects you, your passengers and your vehicle. Taxi insurance also carries some specific requirements for the insured regarding age and driving record.
- Your personal vehicle – If you use your own personal vehicle for business purposes, then a personal auto insurance policy may not suffice if you are in an accident while on company business.
What coverages are available for commercial autos?
The type of coverage you need will depend on several factors, including the type of vehicle(s) you own or operate, your industry, usage frequency and average travel distance. The types of commercial auto coverage offered include:
- Property damage
- Bodily injury
- Medical payments
- Hired/Non-owned auto
- Uninsured motorist bodily injury
- Personal injury protection (PIP)