What is Commercial Auto Insurance?
This insurance is valid on commercial vehicles that are used to carry out various duties on behalf of a business, organization or government agency. The policy offers protection for vehicles that transport people or handle merchandise and heavy equipment.
Who it is For
Commercial auto insurance is designed to cover various types of vehicles that are used primarily to move goods or passengers. This policy covers trucks including dump, semi, tanker, flatbed, box and many others. Additionally, coverage extends to minivans and buses that are used in the transportation industry for public or private hire. A passenger car that’s used exclusively for commercial operations qualifies for this form of automobile insurance.
How it Works
The operator of a commercial vehicle does not need to purchase insurance. Instead, the business that owns the vehicle has to buy the appropriate coverage to protect the driver. Business-owned vehicles are also insured against theft and vandalism. Companies that have advanced security measures such as wire fences and surveillance cameras usually select low levels of insurance covering theft. By contrast, businesses that operate vehicles in high-crime areas can benefit from this policy.
Different Types of Coverage in Existence
If a vehicle gets involved in a crash, a liability policy pays the medical bills of the driver and other people who get hurt. Liability protection also pays for damage to property that results from accidental or deliberate actions of a driver operating a commercial vehicle. Additionally, items that are transported by a truck or van could be insured. Crashes are covered by comprehensive and collision plans that are used for mechanical and cosmetic repairs. A vehicle that’s severely damaged could be replaced with a new model thanks to actual cash value that’s given by an insurance company.
Large commercial vehicles are at increased risk of damaging other property and passenger cars. To account for the risks, owners of trucks and vans can buy premium insurance coverage. When transporting potentially hazardous products in bulk, it’s important for a vehicle to be insured against accidental damage that may affect the immediate surroundings through spills or explosions.