Who Needs Commercial Vehicle Insurance?

Photo of delivery trucksThe risks you face as a business owner vary widely from liability concerns to workers compensation issues to the possibility that one of your workers could be responsible for an accident.

If you have staff members who get behind the wheel, your commercial vehicle insurance will protect your business financially in the event of incident on the road.

What Businesses Need Commercial Vehicle Insurance?

  • Freight companies and other businesses that use commercial trucks
  • Independent contractors who drive during the course of doing business
  • Any business that makes deliveries or transports goods
  • Limo services, taxi services, bus companies and other transportation services
  • If you or your staff members use a vehicle for commercial purposes, you need a commercial auto policy, as your standard personal auto policy will typically not cover you for business use of that vehicle.

The risks associated with commercial use of a vehicle, whether it is personally owned or company owned, often call for higher policy limits and different policy provisions, according to our partners at Trusted Choice.

Do You Need Commercial Vehicle Insurance?

In some cases, it is obvious that you need a commercial vehicle policy. For example, if you have a delivery service, limousine service, or a restaurant that delivers food, you know for certain that your business takes on risk each time you or a staff member drives one of your vehicles.

But there are many confusing scenarios where business car insurance is concerned. What if you use your personal vehicle to drive your kids around and to deliver cakes from your home bakery service? What if you attach a plow to the front of your truck each winter and offer snow plowing services?

It is typically a question of primary use, but you may have a unique situation to address. If you use any vehicle for business purposes, it definitely pays to talk with an agent who understands both personal and commercial vehicle insurance so you can make sure you have the right protection to meet your needs.

What Does Commercial Vehicle Insurance Cover?

Commercial vehicle policies, like personal auto policies, are primarily designed to cover your liability risks and provide compensation for damage to your vehicle. But instead of just covering your personal use of the vehicle, the policy covers you and any other person who drives the vehicle. If you have employees who use their own vehicles for work related to your business, you need to make sure your commercial auto policy covers those employees and their vehicles.

A typical policy will include:

  • Liability: Covers expenses resulting from an accident you or an employee causes, including:
  • Bodily injury to another person
  • Property damage to another person’s property
  • Legal fees
  • Medical payments: Covers hospitalization and other medical expenses for you or your employees, and any passengers in your vehicle
  • Uninsured/underinsured motorist: Covers bodily injury and property damage you or your employees and passengers incur if an uninsured or underinsured motorist caused the accident.
  • Collision coverage: Covers your vehicle when another object or vehicle causes damage.
  • Comprehensive coverage: Covers “other than collision” perils such as weather damage, theft and vandalism.

If you are not sure whether you need commercial vehicle insurance, or what kind and how much you need, your best bet is to work with one of our knowledgeable independent agents who specialize in business auto insurance. We can advise you on the right coverage for your specific business needs.

Learn More About Commercial Vehicle Insurance >>

Comments

  1. I did not know that commercial vehicle insurance was for any company that has staff that drives a car for the company. Because my business delivers some of the goods that we produce I will need to get vehicle insurance. Even though we do not do a lot of deliveries I think that it is better to be safe than to wait for an accident to occur.

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