WEDNESDAY, OCTOBER 28, 2020
When building your business, you may realize that your company needs certain vehicles for work purposes. Delivery trucks, vans and company cars are all common vehicles that businesses use for work. But what counts as a commercial auto, or commercial vehicle?
Essentially any vehicle can be a commercial vehicle. Most commercial vehicles include vans, trucks, passenger vehicles and vehicles over a certain weight or capacity limit. The main qualification for a commercial vehicle is that it is primarily used for work purposes.
Employee Vehicles
In some cases, employee vehicles can be considered commercial vehicles. The line between commercial and personal is thin when it comes to employee vehicles, however. Vehicles that are only used to commute to and from work should be covered under a personal auto insurance policy. However, employee vehicles that are either supplied by the company or frequently used for other work use may need to be covered under a different type of insurance, as they may be considered commercial vehicles.
Insurance for Commercial Vehicles
Commercial vehicles will also need a different type of insurance than personal auto insurance. Vehicles owned or used by a business must be covered under a commercial auto insurance policy. This type of policy offers a lot of the same coverages as a personal auto insurance policy, but is specifically geared toward commercial vehicles.
A full coverage commercial auto insurance policy may include:
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Comprehensive Coverage: Comprehensive coverage provides compensation for damages to the vehicle caused by fire, wind, hail, lightning, smoke, theft, vandalism and other incidents not involving collision.
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Collision Coverage: Collision coverage provides compensation for damages to the vehicle caused by a collision with another vehicle or object.
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Liability: Liability insurance covers bodily injury and property damage the driver may cause someone else while operating the commercial vehicle.
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Medical Payments Coverage: This coverage assists with medical bills the driver and their passengers may face after an accident, no matter who caused the accident.
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Uninsured/Underinsured Motorist: This insurance covers expenses related to an accident where the other driver is not carrying enough insurance to compensate for injuries or damages.
Businesses may also want Hired and Non-Owned auto insurance. This insurance covers vehicles used, but not owned by a business. This insurance can cover employee vehicles, as well.
If your business owns vehicles, they may automatically be considered commercial vehicles. Be sure to speak with your insurance agent about what type and limits of insurance you need.
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