The Purpose of Commercial Insurance
Any company that uses vehicles as part of their business needs commercial auto insurance. The coverage is necessary for vehicles used by employees and management. It will protect the business should the company’s vehicles be involved in an accident. This insurance is for small companies and large companies. Any size fleet of vehicles can be covered. Liability is basic coverage, but full coverage is the best choice.
Full coverage includes liability, collision, and comprehensive. Liability covers personal injury as well as property damage. It also helps when an under insured or uninsured motorist is involved. But collision covers your damages, and comprehensive covers damages due to fire, theft, or vandalism. Some policies also cover any inventory that may have been in a vehicle during an accident.
If you operate a small business from homes, then you may think a regular auto policy is sufficient. But some auto insurance companies will cancel coverage if a personal vehicle is used for business. Get commercial auto insurance to make sure you have valid coverage. There are variations and additions that can further benefit the business. These extras might increase your costs, but will provide beneficial coverage.