Commercial Auto insurance, also known as a business automobile policy, is coverage designed for a business and its use of different types of motor vehicles. This type of insurance policy can provide coverage for automobiles, trucks, vans and any other type of road-worthy vehicle.
Any business that relies upon motor vehicles to meet its operational goals and objectives needs to maintain this type of insurance coverage. A company is able to obtain individual policies on specific vehicles or what is known as a fleet policy, which covers all vehicles utilized by a particular enterprise.
Coverage provided by Commercial Auto insurance extends beyond owned and leased vehicles utilized in the regular course of a company’s business. This type of insurance protection can extend to motor vehicles that a company hires for a particular transport purpose. In addition, the insurance can be used to provide coverage for motor vehicles privately owned by employees of a company that are used in the course of business.
The coverage provided by a commercial automobile policy is similar to that included in an insurance policy for an individual consumer. The policy provides liability coverage, property damage coverage and a provision to address uninsured or underinsured motorists. In other words, a commercial policy provides coverage for bodily injury and death that may result from a motor vehicle accident as well as coverage for property damage. In addition, this type of insurance includes protection in the event that a business’s vehicle is involved in an accident with a motorist that lacks appropriate automobile insurance coverage.
Although some businesses elect to self insure vehicles that are used in their operations, commercial vehicle coverage provides a variety of benefits. Key among them is the fact that it protects the assets of a business in the event an accident occurs as the result of the negligence of an agent of that enterprise. In addition, this type of coverage ensures that vehicle repair and replacement is a financial possibility in the aftermath of even a serious accident.