If you use a vehicle for work-related rides, pickups and deliveries, it may be time to consider commercial auto insurance.
Here's more on commercial auto insurance is, what it covers and what it doesn't cover. Remember to talk to your Rising Star Insurance Group agent regarding what coverage might work best for your business.
What Is Commercial Auto Insurance?
This type of insurance protects you from financial loss in the case of accidents involving business-owned or business-used vehicles. It reimburses you to repair or replace a vehicle for covered events. This typically includes vandalism, theft and specific vehicle damage. It can also indemnify those harmed when the driver is at-fault for a wreck.
Commercial auto insurance includes the following:
- Medical payments
- Auto accident liability
- Accidents involving uninsured motorists
- Damage from non-accident hazards like fire or vandalism (Comprehensive coverage)
Medical Payments Coverage
Medical payments insurance covers medical payments for an injured policyholder. It also pays for medical expenses for your passengers. This coverage extends to authorized drivers for the business, no matter who causes the accident.
For example, a custodian is driving a cleaning company's van on his way to a client. She gets into an accident. The driver travels by ambulance to a hospital. If the driver's health insurance won't pay, then the company's commercial auto insurance might cover outstanding expenses.
Auto Accident Liability Coverage
Commercial liability insurance covers damages due to an accident you cause. Covered costs include the following on many policies:
- Cost to fix the other driver's vehicle or property damage.
- Legal expenses and court costs if someone sues you for their injuries.
Say that an employee driving a company van hits another car, causing an accident in which the other driver sustains injuries. Your commercial auto policy pays for repairs to the car and the other driver's medical bills.
Uninsured Motorist Coverage
If an uninsured driver hits your business vehicle, you could have to pay the damage costs yourself. Uninsured motorist coverage covers costs like property damage and medical expenses.
Perhaps you own an IT consulting company, and an employee takes the company car to visit a client. Another driver hits them and provides insurance information. However, you discover that they let their policy lapse. Your uninsured motorist coverage pays for the damages to the covered vehicle.
Collision insurance pays for damage to a company vehicle from a collision with another vehicle. It might also cover collision with stationary objects. So, if you collide with another car, then your policy can help you pay for the damage.
If a company vehicle sustains damage in a fire, storm or vandalism, then this portion of coverage can pay for the damage. Should a tree fall on the car during a storm, for example, then this coverage might apply.
To ensure that your commercial vehicles have coverage under business auto insurance, talk to your Rising Star Insurance Group agent. They can help you determine the best ways to structure your chosen coverage.
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