If you are a business owner you would want your business to be protected from risks. A business can face a lawsuit if one of their commercial vehicles causes a major accident. This is why your need commercial auto insurance. If you are shopping for commercial auto insurance, consider the points given below.
Every vehicle the business owns should be under the business name, whatever its size, kind, or the purpose that it is being used for. The business, or the title holder, can be sued in case of an accidents. The entire business then is brought in a legal proceeding. If you don’t want issues related to the validity of your insurance coverage, then you should not put any other title on it except your business name.
There are different liability limits offered by insurance company from the basic limits to the high insurance limits which amounts to millions of dollars. Your business can lose plenty of assets if your insurance coverage is basic only, if an accident caused by one of your vehicles leads to the death and injury of many. If you want to void this situation, then you should take the high insurance limit especially if your vehicles face high risks of accidents.
Each commercial vehicle has a correct classification and if you don’t classify your vehicles properly then your insurance coverage can be voided. The consequence of a void insurance policy is that in the event of an at fault accident of your vehicles, your company will have to shoulder everything that needs to be paid since your coverage is can no longer be used. Classification can be different even if the type of vehicle is similar Trucks used by electricians and trucks used as dump trucks, though the same trucks will have different classification. The premium amount is not the same for different classifications of vehicles even if they are of the same type.
Commercial auto insurance coverage is required for automobiles that are titled under a business. Limousine services, food services, delivery services, and other types of vehicles are examples of automobiles used for business.
As was mentioned above, businesses can have basic or high auto insurance liability and your decision can depend on the type of business you have. If your vehicle gets in an accident caused by an uninsured motorist and your employees riding the vehicle gets injured, then the insurance company pays the uninsured motorist coverage. There are businesses that need to get other coverage.
They also offer optional commercial vehicle coverage which include physical damage coverage which will pay for damage to your insured vehicle if it is caused by certain risks including fir, theft, flood, etc. Damages caused by non moving objects like posts or walls in an accident will also be paid by the insurance company.