What Does Commercial Auto Insurance Cover?
Commercial auto insurance covers a variety of situations. Options and terms vary from one insurance company to another, so be sure you fully understand what is included in the policy. You can work with your agent to create a completely customized policy that matches your school’s needs, complete with all available discounts.
Several types of coverage may be included in your commercial auto policy; others are options that you can purchase separately. You will also need to choose the coverage amounts (“limits”) and deductibles. Typical coverage available includes:
- Property damage liability
- Liability for bodily injury to others
- Optional bodily injury coverage for injuries that occur outside of the state in which you reside
- Personal injury to you, your employed drivers, or passengers, including medical expenses and lost wages
- Collision coverage for costs associated with an accident, regardless of who is at fault.
- Comprehensive coverage for damage other than collision.’
- Medical payments coverage for the cost of hospitalization, treatment, and funeral expenses
- Uninsured and underinsured motorist coverage
- Non-owned auto coverage for when you or your employees drive a rented or borrowed vehicle
- Loading and unloading liability
- Substitution transportation when your commercial vehicle is being repaired, and you use a loaner from the repair shop
- Towing and labor costs
When Do I Need Commercial Auto Insurance?
It would help if you had commercial auto insurance for any vehicle your company uses for business purposes, any vehicle with a commercial license plate or tag, and any vehicle registered as a commercial auto.
You must also get commercial auto coverage if your employees will be driving or using vehicles in the course of doing business, whether making deliveries, driving people to the airport, or running errands on behalf of the business.
If you use your vehicle for any of the following functions, you may also be required to get commercial coverage:
- Using the vehicle to carry equipment
- Transporting flammable or hazardous material
- Transporting housekeeping equipment for business use
- Using, carrying, or transporting cranes, or a winch or plow
- Hiring your vehicle out to tow other vehicles
- Delivering any goods such as pizza or any form of wholesale or retail products
- Delivering newspapers
- Trucking and freight transportation
- Transporting people as a chauffeur, limousine service, or taxi service
Some situations and certain occupations may be covered under standard auto policies, but you should always ask your insurance agent if your vehicle use warrants a commercial policy.