Why It’s Important to Have Commercial Auto Insurance

Why It’s Important to Have Commercial Auto Insurance

When you open your business, you might look into insurance that protects your income, facilities, inventory, etc. You know you need workers’ comp, but have you considered your commercial auto insurance options? Take a look at these tips so you can purchase the most appropriate insurance for your company’s vehicles.

What Is Commercial Auto Insurance?

Commercial auto insurance covers vehicles that are used specifically for business purposes. This could be a box truck, 18-wheeler, food truck, passenger vehicle, pickup truck, or other vehicles you’ve purchased for your fleet, and many more.

Your commercial auto policy covers:

  • Vehicle damage
  • Driver injury
  • Injury to others
  • Property damage
  • Legal services
  • Judgments or settlements

Additionally, you might drive your personal vehicle for work every day. When this is the case, personal auto insurance might not cover the business use of your vehicle. Commercial auto insurance protects you fully, helps you avoid out-of-pocket expenses, and even the loss of your personal auto coverage.

(Yes, insurance carriers might drop your coverage if they feel the business use of your vehicle is too risky given the claims you’re filing.)

Why bother with commercial auto insurance when you are required to insure your personal vehicle? Personal auto insurance carriers might deny claims for:

  • Accidents clearly tied to your work
  • Repairs, injuries, or damage caused specifically by your work
  • Excess damage that the insurer deems too risky

Who Needs Commercial Auto Insurance?

Everyone needs commercial auto insurance. Commercial fleet accident rates reached 20% in 2018, and they are likely to rise for the foreseeable future.

When you manage a business and that company owns even one vehicle, you need a commercial auto policy. There is no other way to legally and appropriately insure the vehicle. Plus, a commercial policy offers a broader range of coverage for property losses, injuries, and vehicle damage.

However, there are professionals who might feel they don’t need commercial auto insurance. Commercial coverage is essential for:

  • Electricians
  • Plumbers
  • HVAC technicians
  • Carpenters
  • Roofers
  • Painters
  • General contractors
  • Locksmiths
  • Landscapers
  • Arborists/tree services
  • Caterers
  • Food truck businesses
  • Caterers
  • Mobile businesses (pet groomers, etc.)
  • Home inspectors
  • Real estate agents

Keep in mind, however, that ride-sharing is not covered properly under these policies.

Contact Arrowood for Assistance With Commercial Auto Insurance

Commercial auto insurance is a major part of your operation that cannot be overlooked. You need insurance that keeps your vehicles legal on the road and protects your drivers. Ready to get started? Connect with us for more details on how we can get your business fully covered.