What Does Commercial Auto Insurance Cover?
If your business owns or uses vehicles, it is essential that they are properly insured. A standard personal auto policy might not provide adequate protection for vehicles used for business purposes. This is where commercial auto insurance comes in. This type of policy is designed to cover vehicles used for work, offering protection against various risks encountered on the road. Understanding what is covered is the first step toward ensuring your business is adequately protected. Insurance Company Grandview Heights Ohio can assist in navigating these options.
Core Coverages in a Commercial Auto Policy
Commercial auto insurance policies are structured to provide several layers of protection. While specific coverages can be customized, most standard policies include a few key components.
Liability Coverage
Liability coverage is a fundamental part of any commercial auto insurance policy. If you or an employee is found at fault in an accident, this coverage helps pay for bodily injury or property damage caused to others.
- Bodily Injury Liability: This is for paying for the medical expenses, lost wages, and legal fees if someone is injured or killed in an accident for which you are responsible.
- Property Damage Liability: This is for covering the costs of repairing or replacing another person’s property, such as their vehicle, that is damaged in an accident you cause.
Physical Damage Coverage
Physical damage coverage is for the protection of your own business vehicles. It is typically broken down into two main types.
- Collision Coverage: This is for paying for repairs to your vehicle if it is damaged in a collision with another object, like another car or a stationary object.
- Comprehensive Coverage: This is for covering damage to your vehicle from non-collision events. This includes incidents like theft, vandalism, fire, hail, or hitting an animal.
Medical Payments Coverage
Medical Payments, or MedPay, coverage is for paying the medical expenses for you and any passengers in your vehicle who are injured in an accident, regardless of who is at fault. This can help ensure that immediate medical needs are addressed without delay.
Additional Coverage Options
Beyond the standard coverages, businesses can add endorsements to their policies for more specialized protection. These options allow you to tailor a policy to your specific operational needs.
Uninsured and Underinsured Motorist Coverage
This coverage is for your protection if you or an employee is involved in an accident with a driver who has no insurance (uninsured) or not enough insurance to cover the damages (underinsured). It can help cover your medical bills and vehicle repairs.
Hired and Non-Owned Auto Coverage
If your employees use their own vehicles for business purposes, or if your company rents vehicles, this coverage is important. Hired and Non-Owned Auto (HNOA) insurance provides liability protection for accidents involving vehicles that your business uses but does not own.
Is Commercial Auto Insurance Needed?
A commercial auto insurance policy is generally needed if vehicles are used for work-related tasks. This includes transporting goods, carrying equipment, or traveling between job sites. Personal auto policies often have exclusions for business use, meaning a claim could be denied if an accident occurs during business operations. By securing the right coverage, your business can be protected from significant financial losses.
Secure Your Business Vehicles Today
Navigating the complexities of commercial auto insurance can be simplified with expert guidance. It is important that your business vehicles are covered by a policy that matches your specific activities and risks. A well-structured policy ensures that your assets are protected and your business can continue to operate smoothly, even if an accident occurs. For assistance in finding the right commercial auto insurance, you can contact Insurance Company Grandview Heights Ohio.