It would be a rare thing to find a business that does not have some type of automobile liability exposure. Even minor exposures, such as employees running work-related errands, can rise to significance.
Commercial auto insurance can cover a combination of vehicle types (trucks, cars) and drivers, as well as some types of motorized equipment. It provides for bodily injury liability and property damage while operating a company automobile.
Commercial auto insurance premiums are based on factors such as:
Depending on the specific options you choose, commercial auto insurance policies will include some variation of the following coverage:
Bodily Injury Liability
Provides coverage in case you or your employee cause an accident in which another person (or people) is hurt. The key is that it involves you being held legally responsible for injuries to others because of your driving, your ownership or other use of your business vehicle. It provides a legal defense if someone sues you for damages.
Property Damage Liability
Handles damage that you may cause to another person's property. Usually this means damage to someone else's car, but it could be any property. Again, the coverage only responds when you are legally responsible for such damage and it has to be related to your use or ownership of your business vehicle.
Liability limits for commercial auto policies are typically shown as a Combined Single Limit for Bodily Injury Liability and Property Damage Liability.