Commercial auto insurance is something that every business needs if they have cars on the road. This insurance is special in that it covers the business if one of the drivers happens to get into an accident with someone else, and the company driver is at fault. The other party will most definitely file an insurance claim, and the business will be liable to pay many of that person’s expenses.
Some of the expenses that commercial coverage will take care of are expenses such as medical bills that he the other party has to pay because of the accident. The policy will also cover automobile repairs. Towing costs are also sometimes included in the expenses that commercial auto insurance will cover. Furthermore, the policy may also cover rental transportation if the other person has to rent another vehicle because of the incident. The policy could cover lost work wages if the accident was severe enough to put the other party at work.
Any company that has drivers who transport people, hazardous materials or anything that needs to be delivered should cover the commercial insurance. It’s better to have a policy than to have none at all.
No business should operate without commercial auto insurance. It’s a smart investment and sometimes a required investment for the company to have commercial coverage instead of regular auto insurance coverage.
Commerical coverage works just like any other coverage when it comes to the process of filing claims and such. The company pays a premium every month to have the coverage. If an incident occurs, someone will have to contact the insurance company and report it. The insurance company will then investigate the occurrence and decide what to do in terms of paying for the damages or refusing to do so. If the insurance company decides to honor the claim, it will send a check to the appropriate parties to pay for the necessary expenses. The business will continue to pay the premium after that. Some adjustments may be made to the premium because of the incident, but that may or may not occur.
Exploring the Benefits of Commercial Auto Insurance
Good commercial car insurance is protection that every business needs, should they utilize vehicles in the functioning of the business. This protection safeguards the business policyholder from liability issues and from expensive repair bills should a commercial vehicle be damaged in the necessary operation of the business. In particular, this coverage helps the business if one the employed drivers experiences an accident with another on the road and, importantly, if the company’s driver is responsible. As is most often the case, the other party will want to file a claim; if the business does not have proper coverage, then the company will be on the hook, out-of-pocket, for any and, possibly, all of the individual’s expenses.
This protection is appropriate for all types of businesses that, in some way, utilize vehicles for business operations. It is often required by law, but is also vital so that business owners can avoid or have help with many of the legal, medical, or repair expenses that often result from accidents or other losses that a business will face. No matter if the company has a fleet of vans or trucks or simply uses one sedan for making deliveries, it is important to remember that it takes just one fateful accident on the road to result in a significant loss, even to the extent of bankrupting the business.
How it Functions
Some of the costs that commercial coverage will handle include medical bills that must be paid as a result of the accident. The policy also handles vehicle repair or replacement. Towing costs can also be included commercial auto insurance coverage. Additionally, this plan can also cover rental car costs if the other individual involved needs it due to the incident. And, helpfully, the policy can even compensate for any lost work wages if the accident is so severe as to put the other party off of work.
A business auto policy is not too different from a standard personal policy. As with the usual personal car insurance coverage, a company seeking coverage must first determine what policy coverage options they might require and the necessary levels of each.
Types of Commercial Vehicle Insurance Coverage:
• Personal Injury
• Bodily Injury (to others)
• Collision (with other vehicles)
• Property Damage
• Damage Due to Loading and Unloading
• Rental Assistance During Repair
• Comprehensive Coverage
• Towing & Roadside Assistance
Acquiring the Right Coverage
Obtaining the proper coverage for a any of company’s vehicle(s) will depend on a myriad of questions, such as if the cars, vans or trucks are owned or leased. Another question would be if the vehicle is owned under an individual’s name or under the business name. Equally important would be in determining if the vehicle is to be used for commuting or is it necessary in the functioning of the business? Who will be driving these vehicles? (And so on) Factors that affect the cost of premiums include the kind of business and its location, the type of vehicles being covered, the driving histories of individual drivers, and the level of protection needed for the vehicles. The owner of the business will need to investigate these matters to be sure to acquire the necessary protection and to keep the premiums within one’s budgetary parameters.