As more people drive their cars on the roadways of the nation, exposure continues to increase. If a business owner or an employee of the business is sued as a result of an accident while driving a company vehicle, the liability coverage provided by the commercial automobile policy is there to help protect the companys assets.
The vehicles covered under Commercial Auto Insurance are those that are used in the course of performing work for a business or organization, such as delivery vans and trucks, couriers, snowplows, street sweepers, trash collectors, utility vehicles, taxi cabs, site-contractors, ambulances, squad cars, fire trucks and the list goes on.
Any business owner or the employees of the business that own, lease or rent and drive vehicles designated under the business present a liability exposure when operating company vehicles. The coverage tends to carry higher limits and covers any automobile used in the course of business, existing or newly acquired, and taking into account such conditions as vehicle weight and load capacity. In addition, vehicles may be specifically equipped with features to perform certain tasks, such as:
- Racing equipment
- Hydraulic Lifts
- Altered Suspension
- Ladder Racks
- Permanent Toolboxes
Most states require third party liability coverage including bodily injury and property damage. Policies may be extended to include:
- Physical damage such as comprehensive and collision coverage
- Direct compensation property damage
- Uninsured or underinsured motorist coverage
- Family protection
- Accident benefit coverage
- Hired or non-owned vehicle coverage
Fleet insurance is an option for businesses with 25 or more vehicles. This approach rates the number of vehicles versus rating each automobile individually.
GAP insurance is available to offset the difference between the actual value of a vehicle and the lease agreement. It was established to correct being under water on the lease in the event of a loss.
One of the major benefits of Commercial Auto Insurance is the concentration on safety practices in order to keep drivers safe, cut down on the national statistics and keep premiums reasonable. Further, establishing a traffic safety program saves lives.