If you or your employees drive company cars, vans, or trucks or use their own vehicles as part of your business operations, then you need to protect those vehicles from damage and liability.
This goes beyond the standard vehicle auto insurance that you carry for your personal vehicle.
For cars or other vehicles used for business purposes, you need to carry a separate insurance policy since commercial or company vehicles are commonly exposed to more risks than personal vehicles.
While you probably think of commercial auto insurance as something that is necessary for industrial vehicles like semi-trucks, dump trucks, or tractors, it is a requirement for any business owner who transports people, goods, tools, or anything else with a car or other vehicle.
What is Commercial Auto Insurance?
Commercial auto insurance covers liability and physical damage to company vehicles or vehicles being used in the course of doing business.
It may also cover costs for non-owned cars, uninsured drivers, and any medical bills resulting from an accident caused by the aforementioned motorists.
Why Do I Need Commercial Auto Insurance?
If you or your employees drive company cars or their own cars in the course of doing their jobs, then you need commercial auto insurance.
For instance, if you have a fleet of commercial vehicles that you use in the course of doing business (think taxi services, delivery services, construction, and similar businesses), you may require a commercial fleet insurance policy.
Fleet insurance covers much more than just a trip in your own car – and it often can be more affordable than standard auto insurance.
Commercial fleet insurance provides liability for all your company vehicles in one policy, and it typically allows for all of your employees to drive any given vehicle in the fleet and still be covered if they are in an accident.
How Do You Choose the Right Type of Commercial Auto Insurance?
Like any other kind of insurance, choosing the right type of business auto insurance begins with a conversation with your local insurance agent.
Business autos like cars, smaller trucks, SUVs, and vans may require different types of insurance than trucks and trailers – and all of the aforementioned might require different shops and specialized expertise to repair in the case of an accident.
And all of this is why working with an experienced insurance professional for your commercial auto insurance is so important when you’re buying commercial auto insurance – they know what you need before you even need it!
What Type(s) of Commercial Auto Insurance Do You Need?
The type of commercial auto insurance that you need depends on the type and number of vehicles that you use for your business.
If you have multiple vehicles that you and your employees use on a regular basis, then fleet insurance might be in order because it covers liability risks for all of the cars and other vehicles you and your team utilize.
Note that you can insure your construction vehicles as well as your commercial cars under the same policy – all the vehicles covered under a fleet insurance policy don’t necessarily have to be used for the same purpose, so you can have a tractor-trailer and a regular car insured under the same commercial policy.
What Other Types Of Insurance Are Related to Commercial Auto Insurance?
While fleet insurance and other basic commercial auto insurance might work for your needs if you don’t have any specialized vehicles, there are other types of commercial car insurance that may apply depending on your business.
For instance, food trucks, dump trucks, limousines, trailers, box trucks, tow trucks, snow plows, and even horse trailers require different types of insurance.
Of course, you should always consult your insurance agent if you have any questions about the type of commercial auto insurance or any other kind of insurance that you need as a business owner.
Do you or your employees drive company cars as part of their jobs?
Or do they use their own cars?
Then you probably need commercial auto insurance.
Contact an ASCO insurance agent to learn more all of the options for commercial auto insurance.