Shield Insurance Blog | Commercial Auto Insurance | Business Insurance | Start A Quote Today!
Commercial auto insurance is a type of insurance policy that provides coverage for vehicles used for business purposes. This type of insurance is essential for businesses that use vehicles for their operations, such as delivery trucks, company cars, and other types of vehicles. In this blog post, we will discuss business car insurance, what it covers, how it works, who needs it, and how to get affordable protection for your business vehicles.
What is Commercial Auto Insurance?
Business car insurance, also known as commercial auto insurance, is a type of insurance policy that provides coverage for vehicles used for business purposes. This type of insurance is different from personal auto insurance, which only covers vehicles used for personal use. Business car insurance is designed to protect businesses from financial losses that may arise from accidents, theft, or other incidents involving their vehicles.
What Does Business Car Insurance Cover?
Business auto insurance covers a wide range of risks associated with using vehicles for business purposes. Some of the common types of coverage included in a commercial auto insurance policy are:
- Liability coverage: This type of coverage provides protection against claims made by third parties for bodily injury or property damage caused by your business vehicle.
- Collision coverage: This type of coverage provides protection against damage to your business vehicle caused by a collision with another car or object.
- Comprehensive coverage: This type of coverage provides protection against damage to your business vehicle caused by non-collision events, such as theft, vandalism, or natural disasters.
- Uninsured/underinsured motorist coverage: This type of coverage provides protection against damages caused by a driver who is uninsured or underinsured.
- Medical payments coverage: This type of coverage provides coverage for medical expenses incurred by you or your passengers in the event of an accident.
How Does Insuring a Business Auto Work?
Insuring a business vehicle is similar to insuring a personal vehicle. The first step is to determine the type of coverage you need based on your business needs and the risks associated with using your vehicles. Once you have determined the type of coverage you need, you can start shopping for insurance policies from different insurance companies.
When you apply for a commercial auto insurance policy, the insurance company will ask you to provide information about your business, the vehicles you use, and the drivers who will be operating the vehicles. The insurance company will use this information to determine the cost of your policy and the level of coverage you need.
What Doesn’t Commercial Auto Insurance Cover?
While business auto insurance provides coverage for a wide range of risks associated with using vehicles for business purposes, there are some things that it does not cover. It is important to understand what is not covered by your commercial auto insurance policy to ensure that your business is fully protected from financial losses.
One thing that business auto insurance does not cover is the personal use of your business vehicle. If you use your business vehicle for personal use, such as running errands or commuting to work, you may need to purchase a separate personal auto insurance policy to cover these activities.
Another thing that business auto insurance does not cover is intentional acts or criminal activities. If you or one of your employees intentionally causes damage to another person’s property or engages in criminal activities while using your business vehicle, your insurance policy may not provide coverage for these incidents.
Finally, business auto insurance may not provide coverage for certain types of vehicles or activities. For example, if you use your vehicle for racing or other high-risk activities, your insurance policy may not provide coverage for these activities. Additionally, some types of vehicles, such as motorcycles or recreational vehicles, may require a separate insurance policy to provide adequate coverage.
Who Needs Commercial Auto Insurance?
Any business that uses vehicles for business purposes needs commercial auto insurance. This includes businesses that use vehicles for deliveries, transportation of goods, or transportation of employees. Even if you only use your personal vehicle for business purposes occasionally, you may still need commercial auto insurance to protect your business from financial losses.
Affordable Protection
Getting affordable protection for your business vehicles is essential to ensure that your business is protected from financial losses. Shield Insurance Agency represents over 40 insurance companies, which means we can help you find the best coverage at the most affordable price. Our experienced agents will work with you to understand your business needs and help you find the right coverage for your vehicles.
Contact Shield Insurance Agency at (616) 896-4600 for a free quote today or start the quoting process by visiting this LINK and an agent will be in touch soon. We are committed to providing our clients with the best possible service and protection for their business vehicles. Let us help you protect your business today!
