Commercial Auto Insurance

Does a Small Business Need Commercial Auto Insurance?

You wouldn't think twice about buying commercial auto insurance if you own company vehicles. What you may not realize, however, is that if an employee drives their own vehicle on company business and gets in an accident, the company may be liable. If the employee is at fault, their insurance company won't pay for injuries to any other drivers involved in the accident. This opens the door for claims against your business.

What Does a Commercial Auto Policy Cover?

Most commercial auto policies include coverage for the following situations:

  • Medical costs - Medical expenses for those in your company car will be paid.
  • Liability for injuries - If a third party is injured in an accident where your employee is at fault, coverage will pay for legal fees and settlements. Most limits are capped at either $500,000 or $1 million.
  • Liability for property damages - Coverage will pay the costs to repair the third party's car and any damaged property.
  • Collision protection - This clause will cover damages to your company car during a collision.
  • Liability for uninsured drivers - If the other driver is at fault and is uninsured, your injuries will be covered.
  • Lease coverage - If an employee is driving their own or leased car, your company is not liable.

Protect your business and your employees against unwanted claims with Commercial Auto Insurance.

About the author

Kraft Writer

View all posts