Any business operating a vehicle as a component to their operations, whether for delivery, agent meetings or other processes, needs to have comprehensive commercial auto insurance. You may know the law requires you to have liability coverage, but that's rarely enough protection. As you talk to your independent insurance agent, determine how much coverage fits your specific needs. Here are six types of coverage to consider.
- Bodily injury liability: You may be responsible for the driver's or passengers' injuries or death. If this occurs, this insurance plan provides coverage. It is one of the most common types of policies to have, and most companies need it.
- Property damage liability: If your vehicle is involved in an accident in which someone else's property is damaged or lost, and you are responsible, this coverage kicks in. It is also a commonly selected type of protection and may be required in your state.
- Collision insurance: Collision insurance comes into play when your vehicle is hit or hits another vehicle. The damage from this type of collision can be significant and may not be covered under other types of property damage policies.
- Comprehensive coverage: You may hear this term quite a bit. This type of insurance applies to your vehicle (not damage to another person's vehicle or property). It provides coverage in situations arising from something other than an accident. For example, a tree falls on your car after a storm or vandalism leaves your company truck unusable. It provides financial coverage for your vehicle's repairs.
- Uninsured and underinsured motorist: This type of policy provides protection for your vehicle in the event that the other at-fault driver does not have enough or any insurance to cover the costs of damage to your vehicle.
- Medical payments coverage: Often, medical bills are very high when someone is hurt in a car accident. This type of insurance plan provides coverage for expenses that you or your passengers have as a result of a covered accident.
Business insurance, including commercial auto insurance, is an essential way of minimizing the risks associated with your operating your company. Every day that one of your employees heads out onto the roads, no matter what they are doing or how safe they are, they put your business at risk. With insurance, those risks are minimized.