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The Ins and Outs of Commercial Auto Insurance

Any business that uses one or more vehicles to transport items or people will need commercial auto insurance. Commercial auto coverage, also known as a business automobile policy (BAP), provides coverage to any business owner or employee who uses a vehicle while on the job. Coverage varies depending on the carrier one works with, the deductible, and other factors. However, the following overview offers insight into what the average business owner can expect from a commercial auto policy. 

What Does Commercial Auto Insurance Cover? 

There are some similarities between commercial auto insurance and regular auto insurance. Both forms of insurance provide liability coverage. If a driver injures someone else, the insurance policy will cover the cost of medical care for the injured person. They can provide personal injury coverage to cover employee medical care even if an employee was at fault for the accident. They also cover property damage, physical damage, and collision coverage. 

However, there are things that commercial auto insurance covers that aren’t covered by regular car insurance. A business automobile policy’s bodily liability coverage will usually provide compensation for legal costs. This means that a business owner won’t have to pay to hire a lawyer if an employee causes an accident and the other party sues. A BAP also provides automatic non-owner coverage, which is helpful for any business owner who needs to allow an employee to drive a vehicle that is in the business owner’s name. Many policies also cover equipment and supplies. They provide compensation if items in a business vehicle are damaged or stolen. Commercial auto insurance also frequently covers loading and unloading injuries. This covers the cost of medical care for employees who get hurt while loading or unloading a commercial vehicle. 

What Isn’t Covered by Commercial Auto Insurance? 

Insurance agencies offer multiple policy add-ons for incidents that aren’t covered under a typical commercial auto insurance policy. Rental vehicles aren’t covered by the average policy, which means that a business owner will want to purchase lease coverage, hired auto vehicle coverage, and/or a rental reimbursement policy. A business that relies heavily on its vehicle fleet should consider investing in roadside assistance or expanded towing coverage. Vehicle breakdowns can happen with little or no advance warning. Failing to fix a vehicle quickly can result in delays that could cause customers to lose faith in a business. 

There are also some forms of damage that are never covered under a commercial auto policy. Intentional damage isn’t covered. Incidents involving one employee injuring another employee also aren’t covered. For example, if an employee driving a car hits an employee loading or unloading the car, the injury would be covered by worker’s compensation insurance rather than commercial auto insurance. A commercial auto policy also doesn’t cover moving companies that damage a homeowner’s personal belongings as this damage is covered by household goods moving insurance. 

How to Choose a Commercial Auto Insurance Policy 

A business owner will want to purchase auto insurance tailored to meet his or her industry’s needs. A construction company, for instance, will want loading and unloading insurance. However, a pizza delivery truck likely won’t need it. It’s also important to choose a policy that offers flexible coverage as the business grows and changes. Business owners who plan on buying more vehicles or expanding delivery services will want coverage that can be adapted quickly and easily. 

Customer service is also an important factor to take into account. A business owner needs to know that the insurer will approve compensation claims without undue hassle or delay. It’s also wise to make sure the insurer is financially sound. Trying to switch to a new policy after an insurance agency has declared bankruptcy can be both costly and difficult. 

The cost of a policy should also be considered. Getting price quotes from multiple insurers can help one find the best deal. Alternatively, a business may want to bundle car insurance with other commercial policies. Other ways to lower the cost of commercial auto insurance include adding anti-theft devices to commercial vehicles and raising the policy’s deductible. 

Grand Mutual Insurance Services offers flexible, affordable commercial auto coverage. It’s a top industry provider and has a track record of providing a high standard of customer service. What’s more, the company offers many other commercial policies as well, making it easy for a business owner to obtain all needed forms of coverage under one roof. Get in touch to learn more about the options or to start the process of selecting great auto coverage for any business. 

Have questions? Our team at GMIS is here to help.

At Grand Mutual Insurance Services, we are committed to providing you with the most up to date information and guidance on the insurance market in California. Your peace of mind is our top priority. We understand the importance of reliable insurance protection and are here to support you through these challenging times.

As always, if you have any questions or concerns, please do not hesitate to reach out to our team. We are always happy to hear from you and assist you in any way we can.

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