As with personal auto insurance, a commercial auto policy can be structured to provide financial protections against personal injury and other liabilities, as well as coverage for collisions and uninsured motorists. And you can purchase comprehensive coverage that will insure you against damage to your vehicles caused by risks like fire, theft, hail, and floods.
Commercial auto insurance coverage typically provides for higher policy limits than personal auto. The point here is to safeguard your business assets from lawsuits and other liabilities.
Under most commercial auto policies, your employees who drive your insured vehicles will be covered under the policy’s terms. And, under most of these policies, your employees’ own vehicles will be covered when they’re used for company business – if and when any claim expenses exceed the limits of their personal auto policies. Coverage for your employees will also extend to their use of a rented vehicle while working for your business. But policies do vary. You should be sure to consult with your insurance professional to make sure you’ve got all the bases covered.
There are many specialized coverages offered through commercial auto insurance. Some insurers include these for no extra cost. These include insurance for:
- Physical damage to hired and borrowed vehicles, if a rented or borrowed vehicle used for your business is damaged
- Lease or loan gaps – these gaps occur when a vehicle is totaled and the actual cash value of a car that you’ve either leased or have been making payments on is less than the amount you’d owe to a rental company or a bank
