How is Commercial Auto Insurance Different

Setting up your own business is not an easy task. You have to consider a lot of things including your employees, marketing problems, and contingency plans. One of these important issues is applying for commercial auto insurance. Why would you need that type of insurance considering you already have your own car insured?

There are many things that can happen to a business. One danger is paying for a lot of bills because of accidents. You should be prepared in case these unfortunate events happen. They do not only pile up the bills, they would also heavily affect your business’ financial condition.

Unlike ordinary auto insurance, commercial auto insurance tends to be more expensive and more complex. You need to insure your truck, trailer, or car that is used for business because individual auto insurances do not provide coverage for commercial use. Commercial auto insurance for business usually includes additional similar coverage for your business vehicles. The most common fixed and optional insurance coverage for commercial vehicles are:

  • Accident profits coverage – This is always offered by a majority of insurance companies. It provides payments for medical treatments, loss of earnings due to the accident, and funeral costs.
  • Intermediary liability coverage – This offers a coverage, if in case your driver, while driving your vehicle, was charged officially of hurting someone or damaging property. However, if your driver was held for more than what the coverage provides, then the company will be responsible for it.
  • Unidentified, Underinsured, and Uninsured motorist coverage – is a common type of coverage. This coverage takes effect if your commercial driver was wounded or killed by an underinsured or uninsured driver, or by means of an unidentified vehicle.
  • Direct reimbursement – This is a coverage that provides reimbursement for damages to your commercial vehicle and any possessions it carries, given your business driver is not guilty of the accident.
  • Family protection coverage – This is a type of coverage for your commercial vehicle’s driver from the actions of an uninsured or underinsured person. If possible, there is also family protection for the driver’s family in certain cases.