Commercial Vehicle Insurance: Is It Necessary?

For many companies, traveling is a big part of running their day to day operations. If traveling is common for your business whether that’s flying across the country or driving to client locations, then you probably have commercial vehicles that need to be insured. As a business owner, you want to protect your company and your employees, which can be done by looking into commercial auto insurance and finding out how it can benefit you and your company.

What is Commercial Vehicle Insurance?

Commercial vehicle insurance covers all cars that are used for any business-related purposes. Personal auto insurance would not cover physical damages or liability coverages if an accident were to happen on the job. That’s why business owners must purchase commercial vehicle insurance in order to file claims and get coverage on all company vehicles.

The Difference Between Commercial and Personal Auto Insurance

Both policies will cover auto repairs and medical costs after an accident. However, personal auto insurance will not cover the damages to your company car in the case of an accident. Commercial auto insurance covers a variety of things from higher claims, work-related vehicles, to more complicated legal issues. You may pay a higher rate for commercial insurance, but you will be protected in case anything happens to you or the vehicle.

What Type of Vehicles Need Commercial Insurance?

A car that is used for delivery services or used to transport clients is considered a business vehicle and should be insured commercially. Following is a list of some of the duties that are performed in a commercial vehicle and need this type of insurance:

  • Business Autos: cars, light trucks, SUV’s, and standard personal vehicles
  • Trucks: dump trucks, tractor-trailer, towing
  • Trailers: pickup truck utility trailers and large dump body trailers

What’s Covered with Commercial Insurance?

Commercial auto insurance offers a variety of coverages to purchase. Below is a list of some them.

  • Bodily injury liability
  • Property damage liability
  • Combined single limit (CSL)
  • Medical bills
  • Uninsured motorist
  • Comprehensive physical damage
  • Collision

Why You Need Commercial Insurance

There are a few different reasons why you may need to acquire commercial vehicle insurance. Here are a few requirements for commercial vehicle insurance:

  • If your primary job is transporting goods or people in the vehicle.
  • If your vehicle is mostly used for any commercial services.
  • If what you’re transporting requires high liability insurance limits.
  • If due to the nature of the vehicle or modifications it requires special insurance.
  • If you spend most of your time on the road on company time.

What Else to Consider?

While getting commercial auto insurance is important, you should also consider adding non-owner car insurance as well. This provides coverage for injuries or damages attained while being in an accident while driving a car that is not yours.

Why Should I Consider Non-Owners Insurance?

Technically, your employees that are driving your cars don’t own those vehicles. There are many different scenarios where having this coverage could benefit you especially if you or anyone who works for you does any of the following activities for business:

  • Rent Cars: if an employee is renting a car for business purposes, non-owner car insurance can also act as rental insurance. It’s oftentimes a lot of cheaper coverage options than what offered by the rental agencies.
  • Car Sharing Apps: if one of your employees is using a car-sharing app to get to work, a conference, event, or anything related to work, and gets into an accident, non-owner insurance can be a supplement in the event they sustain any injuries.

You always want to protect your business and your assets, especially when you’re running a company with commercial vehicles. TJ Woods can help you decide whether or not your company should be insuring your company cars. Contact us today to set up an appointment!