Commercial auto insurance coverage has many different components and it is important to become familiar with them for two reasons. The first reason is that it makes good business sense to be certain that you are addressing all of your business auto risks appropriately and the second reason is that you need to ensure that you are compliant with auto insurance laws that may apply your business automobiles.
Comprehensive and Collision
Physical damage to your fleet of vehicles is an important risk when you consider the cost to repair any commercial vehicle. There are two parts to the physical damage coverage section, including comprehensive coverage and collision coverage.
Comprehensive coverage provides protection for a list of covered perils, which will often include vandalism, fire, hail and other assorted perils. This is a valuable coverage that you should maintain if your vehicles are new, or if they are financed.
Collision coverage pays for damage to your commercial auto arising out of its impact with another vehicle or object.
Bodily Injury Liability, Property Damage
The driver of your commercial auto can legally obligate your business to pay for injuries or damages to others if they cause an accident. Auto liability insurance coverage is designed for this risk exposure and there are two main components of coverage for this part.
Bodily injury liability arises when your business becomes responsible to pay for injuries sustained by someone else in an accident. Depending on the state where you live, this responsibility could include medical bills, lost wages, and damages for pain and suffering.
Property damage liability is another component of the auto liability coverage and it will pay for damage to the property of others, including damage to other vehicles as well as damage to property such as buildings, fences or even mailboxes.
Personal Injury Protection (PIP)
Depending on where you live, you may find that workers compensation will be the primary coverage for any employees who are in your commercial vehicle at the time of an accident. Personal Injury Protection (PIP) will also provide coverage for medical expenses incurred by injured passengers of your vehicle, regardless of who may be at fault for the accident.
Uninsured and underinsured drivers are a common occurrence on today’s roads, even though most jurisdictions have strict insurance requirements for driving any vehicle. If your commercial vehicle is involved in an accident with one of these drivers, you can still be protected if you have purchased uninsured and underinsured motorists coverage for your commercial auto insurance policy.