Commercial vehicle insurance is a policy that all businessmen need to cover for vehicles, vans, and automobiles used in their daily business processes. No matter the size of the business, being covered by this type of insurance will really make a big difference.
Buying a commercial vehicle insurance is necessary for business owners who make use of commercial vehicles throughout the process of their company, like pick-up and delivery services. This insurance coverage gives physical damage and liability coverage for situations, amounts, as well as usage not covered by the PAP or personal auto policy. Recognizing the distinction between these two automobile policies and understanding when they best suited will significantly help in the success of one’s business.
What Types of Automobiles are Covered?
The type of commercial vehicles covered in the commercial vehicle insurance consist of all vehicles used for commercial activities such as the following:
- Company vehicles
- Box trucks
- Food trucks
- Company vans
- Service utility trucks
Commercial vehicle insurance can help pay to fix any damage to a commercial vehicle if it has been harmed by collisions, natural tragedies, or theft. It can also cover the defense costs if a case will be filed against the insured after an accident (consisting of lawful charges and also medical expenditures).
Types of Coverage
Choosing a commercial vehicle insurance coverage is critical in protecting a business. The coverage consists of the following:
Bodily injury liability coverage
This policy assists pay for any kind of costs for bodily injury or the demise of somebody involved in a mishap for which the insured is at fault.
Uninsured motorist coverage
This coverage spends for the insured’s injuries and also any kind of property damage caused by an uninsured motorist, consisting of a hit-and-run. Uninsured motorist coverage is an essential aspect of commercial vehicle insurance policy because it aids the insured pay for all medical bills or repair expenditures if the insured’s vehicle is hit by a driver who does not have any type of automobile insurance.
Medical payments coverage
Also called the personal or no-fault injury coverage, medical payments coverage pays for the expense of hospitalization and other medical costs of the motorist and passengers in the vehicle involved in a crash, despite the fault.
Do You Require Commercial Vehicle Coverage If You Have a Personal Auto Policy?
These 2 insurance plans are suitable in different scenarios. For example, the personal auto policy applies if you just use your personal vehicle to meet clients every so often. However, business vehicle insurance might be a much better choice if:
- You drive your personal vehicle for service deals on a regular basis.
- Your vehicle is registered under your business.
- Your employees utilize the company vehicles.