Commercial auto liability insurance is a great resource for many businesses that involve some form of transportation. It acts as a safeguard against high fees that transportation businesses could face. When businesses have commercial auto liability insurance, it protects the business from costly repairs, property damage fees, or even the threat of lawsuits. All of these fees could be devastating to a business and could also disrupt operations.
Generally, commercial auto liability insurance is recommended for businesses that own, lease, hire, or operate vehicles. At the very least, businesses that fall into this category are advised to carry minimal liability courage. This minimum coverage is required in many states.
Commercial auto liability insurance is also suggested for vehicles that:
- Have to register commercially
- Carry a commercial license plate
- Are used for business purposes
Commercial auto liability insurance is suggested for businesses whose employees complete tasks like:
- Driving customers to the airport
- Traveling for sales calls
- Transporting products to a specific location
What Is It All About?
All commercial auto liability insurance coverage is not the same. Businesses can tailor their insurance coverage to fit their needs. You should include policies that benefit and protect your business the best.
Liability Coverage
This type of coverage is useful for businesses because it pays for the medical fees of others and the cost of damage to other people’s property if your driver is at fault. Oftentimes, this coverage includes the cost of a legal defense if your company is sued. Businesses are recommended to choose a liability coverage limit of up to $1 million with a minimum of $500,000.
Physical Damage Coverage
Physical damage coverage involves three types of coverage options: specified perils, collision, and comprehensive.
Specified perils coverage – This coverage covers only specifically named events within the policy. It usually features a lower premium for businesses to pay.
Collision coverage – This coverage will cover the fees of a crash with an object or from the vehicle overturning.
Comprehensive coverage – This coverage will cover the costs of an accident except for a collision and an overturned vehicle. It also won’t cover things like wear and tear, or mechanical repairs. However, it will cover things like flood damage, fire, theft, window breaks, damage caused by falling objects, etc. This is the broadest form of coverage you can get as it results in physical damage coverage.
Some experts suggest that companies with larger fleets only insure newer vehicles with physical damage coverage as a cost-saving measure. However, that may not be the best option for all companies.
Medical Payment Coverage
Medical payment coverage will cover the costs of medical or funeral expenses for people inside your business’s insured vehicles. This coverage usually covers these costs regardless of who is at fault.
In terms of injuries, medical payment coverage will pay for things like:
- Co-pays
- Hospital visits
- Surgery costs
- X-rays
- Ambulance fees
- Nursing services
Medical payment coverage is a little different than liability coverage in that liability coverage will not pay for an employee’s medical bills after an accident in a work vehicle. Instead, those fees would likely have to be paid out of pocket.
Helping Your Business Run Successfully
Transportation Insurance Brokers is the largest brokerage firm in the United States that is dedicated to the passenger transportation industry. This means we have a vast network of resources to assist businesses with their transportation insurance needs. Our team is composed of experienced professionals who understand the transportation industry inside and out. We can help ensure that your business has the adequate coverage needed to run successfully.
We offer various insurance solutions that may fit your business’s needs. This includes commercial auto insurance, workers’ compensation insurance, and commercial umbrella insurance. We also have other important insurance options that are necessary for businesses looking for the best protection. This includes cyber insurance and employee practices liability insurance. Our services don’t end there. You can find out more about our complete list of services by clicking here.
Please contact TIB Insurance to learn more about our services and what we can add to your business. We look forward to working with you!