Commercial auto insurance protects the vehicles owned/ leased by a business and the passengers travelling in the vehicle in the event of an accident. It also provides protection for personal vehicles used for the business purpose. Additionally, it covers vehicle vandalism, theft and certain types of vehicle damage.
Basic elements of commercial auto insurance:
- Physical damage insurance: Covers collision and comprehension coverage.
- Liability insurance: Includes bodily injuries, damages to property, uninsured and underinsured motorist.
- Other coverage: Covers medical payments, rental reimbursement, towing and labor and lease gap coverage.
The most important benefit of purchasing commercial auto insurance is your business meets the local and state laws recommendations. As per law every business owner must hold at least state minimum commercial insurance coverage. American Insurance Brokers Inc provides commercial auto insurance in Texas. Their team of professionals will guide you on the right coverage plan you require.
Need for commercial auto insurance:
The commercial auto insurance apart from protecting your vehicle protects your whole business. In case your business vehicle is involved in an accident in which someone is injured/ killed, the liability is likely to rest on your company. If you find yourself facing a lawsuit from the damaged party, you may be required to pay for all the damages which could eat up your company’s profits. You could even be facing bankruptcy depending on the severity of damages. Commercial insurance coverage keeps you safe from such dire situations.
All that is included in commercial auto insurance:
Collision insurance: Pays for damages caused when your business vehicle hits another vehicle or vice versa regardless of who caused the accident
Comprehensive insurance: Pays for vehicle damage caused by incidents other than accidents including theft, vandalism, flood, fire, earthquakes or damage by any animal.
Liability insurance: Covers bodily injuries and vehicle damages of the opposite party if you caused the accident. If you are facing lawsuit, it covers the opposite party’s medical costs and lost wages.
Uninsured and underinsured motorist coverage: Pays for injuries you sustained if the opposite party is uninsured. It also protects you if the person at fault doesn’t have sufficient liability insurance.
You can also opt for add-ons which include rental reimbursement, roadside assistance involving dead batteries or flat tires, replacement cost of new vehicle and other medical payments. Your commercial auto insurance agent is the right one to guide you on the coverage plan.