Any business that has a large fleet of vehicles, or even just one vehicle used for business, needs some type of commercial auto insurance. Commercial transportation insurance, or business auto insurance, is like your personal auto insurance policy but it covers trucking, charter buses, specialized transport, construction equipment, vehicles for hire, waste and refuse hauling, recycling, artisans’ vans and commercial vehicles.
Your business owners policy or other business insurance policies will not cover your business vehicles; commercial transportation coverage must be purchased separately. Your need for coverage depends on how vehicles are used in your business, who drives your business vehicles, whether or not you own or lease your business vehicles, if you drive it here in Virginia or another state, and if you or other employees drive personal vehicles for business purposes. Many coverage types exist but generally this insurance protects against property damage and medical harm to employees and third parties, and defends against legal claims resulting from accidents. It can also cover cargo losses, theft, breakdowns, lost income and unfulfilled contract claims.
Business Auto Coverage
The Business Auto Coverage Form is the most commonly used insurance contract for providing business auto coverage. It defines autos as cars, trucks, trailers, vans or other vehicles designed for use on public roads. Basically, if any driving whatsoever is done for your business, you need a business auto policy to provide appropriate liability protection in the event that one of your vehicles is involved in an accident. Only a business auto policy can provide proper protection for vehicles being driven for business purposes.
As a business owner, you can customize your policy to cover your vehicles in a manner that suits your needs. Your policy can cover:
- Vehicles that your business owns
- Vehicles that your business owns, leases or hires
- All vehicles that are used for business purposes, including those that the business does not own, lease or hire (e.g., personal vehicles that are driven for business purposes)
You can list on your policy each vehicle that you want to be covered. This means that you can carry different coverage for different vehicles depending on the vehicle’s characteristics and the coverage you need for it. In general, you will need physical damage coverage, liability coverage, medical payments coverage, and uninsured/underinsured motorist coverage for each business vehicle.
Price of Commercial Transportation Insurance
Commercial transportation insurance is priced differently than personal auto insurance, and it is subject to different eligibility requirements, coverage definitions, exclusions and limitations. Business owners must be sure that they understand the differences between commercial and personal auto policies so that they can get the right coverage. The Andrew Agency can help you sort through differences and make sure you are protected.
Are you unsure of whether or not you need commercial auto insurance for your business? How do you use vehicles for your business? Who will be driving them? Do you on the vehicles used in your business operations, or do you rent or lease them? Will you or your employees be driving your personal vehicles for business purposes? The answers to these questions will help you determine your need for business auto coverage. But in general, if any driving is done for your business, regardless of who owns the vehicles, only business auto insurance can provide the right protection. Consider the devastating impact of one car accident if you do not have the right coverage!
Contact The Andrew Agency
There are many other considerations for business owners who need coverage for business autos. You can work with the agents at The Andrew Agency to assess your needs and determine the best combination of coverage to properly protect your business and your employees. Contact The Andrew Agency at (804) 320-2886.
