Commercial/Business Auto

A Simple Guide to Business Auto Insurance

Your Business needs Business Auto insurance, or Commercial Auto Insurance, If you need to use automobiles in the course of running your business. Whether your employees are involved in work-related tasks using personal vehicles, or you need to transport equipment, move to other job sites, or make courier deliveries, or your sales people visit customers- there’s something important you should know. You, or your employees may get into a traffic accident, and likely, your personal auto policy won’t be protecting your business. Typically, in this case, you need business auto insurance.

Driving comes with some level of danger, and so the most careful driver may get involved in accidents due to factors that could be uncontrolled. Commercial auto insurance is additional coverage that protects you beyond what you would be offered on an individual policy, one that offers lower limits, or even no limits, of cover for business related liabilities.

Does Your Business Need Commercial Auto Insurance?

There are many cases where taking up business car insurance is good for your company, to say the least, including:

  • businesses whose employees use their private cars on the job;
  • food trucks or catering firms;
  • companies that normally deliver goods to customers;
  • contractors who carry tools and equipment in their vehicles;
  • transportation services like taxis or shuttle services;
  • non-profit institutions serving people by transport in vehicles.

Without this coverage, you are leaving your business exposed to Injuries and damages, not to mention lawsuits that can easily add up to tremendous expenses, that can put a huge dent in your business’s finances or in some cases financially ruin it completely.

What Does Business Auto Insurance Cover?

Business auto insurance protects you and your company with several types of coverage:

  • Auto liability — If you or an employee cause an accident, this covers the other person’s medical bills and car repairs. It’s required in most states.
  • Personal injury protection (PIP) — This helps pay for medical expenses and lost wages for you and your passengers, no matter who was at fault.
  • Collision coverage — If you crash into another car or object, this pays to repair or replace your vehicle.
  • Comprehensive coverage — This covers your auto if it’s stolen, vandalized, or damaged by things like fire or hail.
  • Uninsured/underinsured motorist coverage – If an uninsured driver hits you, this insurance steps in to cover your costs.
  • Gap insurance — If you’re leasing a vehicle, and it’s totaled, gap insurance pays the difference between what you owe and what the car is worth.
  • Rental reimbursement – Need a rental car while yours is being fixed? This helps cover the cost.

What’s Not Covered

Not all are covered under the simple business auto insurance policy. The following is usually not included:

  • Medical expenses not arising from an accident when an employee is driving a company vehicle.
  • The things inside your business vehicle.
  • Accidents occur during instances when an employee uses a personal vehicle for business purposes.
  • Repairs for a rental vehicle you’re using while your company car is being fixed after an accident
  • Intentional injury or damage.
  • Injuries or damage that happen before you start loading property onto a vehicle
  • Damage resulting from moving property using mechanical devices that are not attached to your vehicle.
  • Injuries or damage from the usage of mobile equipment not covered under your policy, such as a forklift
  • Injuries resulting directly or indirectly from pollution coming from your vehicle.

Types of Vehicles Typically Covered

If you’re using a vehicle for industrial purposes to make money, it’s eligible for business auto insurance. This includes the car itself and any trailers connected to it:

  • cars used in delivery and sales;
  • full-size vans;
  • cargo vans;
  • pickup trucks;
  • box trucks;
  • food trucks;
  • SUVs;
  • dump trucks;
  • refrigerator trucks;
  • catering trucks;
  • landscaping trucks and trailers;
  • contracting trucks;
  • utility trailers;
  • straight trucks and flatbed trucks;
  • cement mixers;
  • delivery vans;
  • tractor trailers;
  • cranes.

Please note that some insurance companies ask for a special policy for semi-trucks and dump trucks.

About A&Y Royal Insurance

Business auto insurance can seem complicated because coverage can vary from one plan to another. But while it might look confusing at first, the basics are actually pretty simple. At A&Y Royal, we believe in keeping insurance straightforward and hassle-free.

Of all the insurance policies your organization may need, business auto insurance is one of the most necessary. By getting the proper coverage, you will protect yourself in the event of any trouble, accident, or mistake.

Get in touch with us today to receive a free quote.

Request a Quote

For more details either call us at 718-375-9000 or read our respective guides: