Commercial Auto Insurance: Policy for the Business Vehicle

2007-03-08 10:33:40

( Insurance )



Commercial auto insurance provides the same insurance coverage for privately-owned vehicles. The only difference is that commercial vehicle insurance plans specifically provide coverage for vehicles used for commercial or business purposes.

THE NEED FOR COMMERCIAL CAR INSURANCE

Why would you need commercial auto insurance when your personal car and your employee’s own cars have adequate coverage on their own? For the simple reason that company vehicles are not covered by your personal insurance and you are not allowed to extend your personal car insurance to cover the ones that are used for business.

When company-owned vehicles become involved in accidents or have been stolen, your commercial vehicle insurance will cover the costs for the repair or replacement of the vehicle, as the case may be. Commercial auto insurance also includes the payment for the cost of treatment should someone get hurt in an accident that involves your company’s vehicle.

Commercial auto insurance also has a policy that provides insurance for vehicles not owned by the company but were being used while in the line of work. These include rented cars and those owned by your employees. This special feature grants coverage as long as the vehicle was used while dispensing functions of the business.

WORKING ON THE ROAD

Commercial vehicle insurance is particularly important if your business heavily relies on vehicles. This includes companies that have delivery services, and those in the trucking and rent a car business.

While commercial auto insurance shares salient points with private car insurance, like benefits and coverages; the two policies will differ in terms of claims, premium computations, and some other procedural aspects. Depending on the nature of your business, commercial auto insurance may be more expensive, especially if your business puts vehicles in high risk situations.

As a responsible businessman, you have to take out commercial vehicle insurance to provide protection for yourself and for your employees, whether inside the office or out on the road.


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