Commercial Auto
Do I need a commercial auto insurance policy?
As a businessowner, you need some of the same insurance coverages for the cars, trucks, vans or other commercial vehicles you use in your business as you do for vehicles used for personal travel -- liability, collision and comprehensive, medical payments (known as personal injury protection in some states) and coverage for uninsured motorists.
Many business people use the same vehicle for both business and pleasure. If the vehicle is owned by the business, make sure the name of the business appears on the policy as the "principal insured" rather than your name. This will avoid possible confusion in the event that you need to file a claim or a claim is filed against you.
Your Businessowners Policy (BOP) does not provide any coverage for commercial, or personal vehicles, so you must have a separate policy.
Most states require you to purchase liability insurance for bodily injury and property damage that may result from a vehicle accident occurring while you or someone from your organization is driving a business vehicle. Many states also require you to have uninsured/underinsured motorists coverage and/or medical payments coverage (known as Personal Injury Protection (PIP). You can also purchase physical damage coverage for vehicles your business owns, leases or hires.
The Business Auto Coverage Form (BACF) is the most commonly used contract for providing business auto liability insurance. Although the form refers only to “autos,” autos are defined to include cars, trucks, trailers, vans or other vehicles designed for use on public roads.
Each vehicle you use in your business can be separately “scheduled,” or listed on your policy along with corresponding coverages. In other words, you can choose different coverages, for your various vehicles, depending on the vehicle’s characteristics and the coverage you need for it.
Whether you need to buy a business auto insurance policy or not will depend on the kind of driving you do. Your insurance agent should ask you many details about how you use you commercial vehicles in your business, who will be driving them and whether employees, if you have them, are likely to be driving their own cars for your business. Please call, click or complete the attached form for a free quote. |
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