Many businesses rely on a vehicle to transport goods, deliver inventory, or for other business operations. Commercial Auto insurance can help you to not only protect your driver, but also your business.
Types of Vehicles Covered
Commercial Auto insurance is a necessity for any business that uses a car, truck, van, or SUV for commercial purposes. Commercial Auto insurance also covers other types of commercial vehicles such as:
- Commercial trucks, including but not limited to: semi-trucks, tow trucks, dump trucks, box trucks, refrigerated trucks, bucket trucks, flatbed trucks, etc.
- Vehicles that are equipped with specialty equipment or machinery
- Limousines and other hired vehicles
- Rental cars
- Vehicles owned by a business or corporation
- Vehicles used for ridesharing
- Personal vehicles used for business purposes (such as a delivery driver)
Types of Coverage
Commercial Auto insurance provides similar coverage options as Personal Auto insurance but may provide higher coverage limits. Commercial Auto insurance also takes into account special circumstances of business operations such as multiple drivers, equipment used for loading or unloading, specialty equipment or machinery, and the liability of not only the driver but the business as well.
Businesses are only required to maintain the minimum insurance requirements mandated by the State of Florida; however, because of the increased liability a company has when employing commercial vehicles, opting for additional coverage will help to prevent a single accident from dismantling your company.
Commercial Auto Insurance Coverage Types:
Property Damage Liability: This coverage pays for damage your driver may cause to someone else’s property. Usually, this means damage to someone else’s car, but it also includes damage to lamp posts, telephone poles, fences, buildings, or other structures your company vehicle hits.
Personal Injury Protection (PIP) or Medical Payments: This coverage pays for the treatment of injuries to the driver and passengers of the policyholder’s car. At its broadest, PIP can cover medical payments, lost wages, and the cost of replacing services normally performed by someone injured in an auto accident. It may also cover funeral costs. Many carriers will also allow you to purchase additional Medical Payment coverage.
Comprehensive Coverage: This coverage reimburses for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals, such as a bird or deer.
Collision Coverage: This coverage pays for damage to your car resulting from a collision with another car, object, or as a result of flipping over. Even if your driver is found to be at fault for the accident, your business Collision coverage will reimburse your company for the cost of repairing your company vehicle, minus the deductible. If you’re not at fault, your insurance company may try to recover the amount they paid for repairs from the other driver’s insurance company. If they are successful, you’ll also be reimbursed for the deductible.
Uninsured and Underinsured Motorist Coverage: This coverage will reimburse your company if your driver is hit by an uninsured or a hit-and-run driver. If the driver of the other vehicle only carries the minimum required insurance, the $10,000 Property Damage Liability coverage may not be enough to replace your commercial vehicle if it is totaled in the accident. Underinsured Motorist coverage will help bridge the gap between the other driver’s insurance coverage and the damage to your commercial vehicle. Florida is ranked as one of the worst states for uninsured drivers, so consider heavily on whether or not to opt for this additional coverage.
Coverage for autos you borrow or rent: Liability increases when you rent, hire, or lease a car for your business. If your business often borrows vehicles for commercial use, make sure to include this coverage to protect your driver and your company against injury and liability.
Coverage for employees using their cars for the business: If an employee uses their personal car to make a delivery or pick up supplies, then their Personal Auto insurance will not cover any damages or liability in the event of an accident. Personal cars used for business purposes, even if it does not occur often, need to be covered under Commercial Auto insurance. The only exception is when an employee drives to and from work – Personal Auto insurance handles accidents that occur during daily travel.