Who Is It For?

Vehicle insurance is required in all states. Many drivers, however, purchase the minimum amount required by law in an attempt to save money. Business owners typically need a much higher amount – an amount above what’s offered on a basic auto insurance policy. The difference between a regular auto policy and a commercial vehicle policy is that that commercial policy offers higher amounts of coverage and overs more vehicles.

How It Works

In a business setting, accidents and circumstances often arise that are not covered on a basic car insurance policy. Some of these situations could lead to high medical bills or lawsuits. When vehicles are used to transport business-related services or products, they need to have higher amounts of coverage. Commercial policies are ideal for business partnerships or large corporations.

Commercial vehicle insurance is important if your vehicles are used to transport heavy loads of equipment. Basically, a commercial should be in place any time you have employees driving your vehicles for business. Commercial insurance covers damage to the vehicles, medical expenses if someone is injured or legal expenses resulting from accident-related lawsuits. The type of policy a business needs depends on the type of company, the number of employees, and the number of vehicles.

Coverage Options

Commercial vehicle policies generally offer different types of coverage. Here are the basics, which can be explained by an insurance agent.

•    Collision
•    Comprehensive
•    Liability – Covers both property damage and bodily injury
•    No-fault insurance
•    Medical coverage
•    Uninsured/underinsured motorist coverage

Commercial auto insurance provides businesses and business owners with protection in case their employees or vehicles are involved in accidents.