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:
- Type of vehicles driven
- Expected mileage
- Loss experience
- Loss prevention efforts
Towne Insurance advisors can make recommendations based on your business exposure and risk philosophy.
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.
Uninsured Motorist & Underinsured Motorist Coverage
Pays for injury you suffer from an accident caused by a person who has no insurance; a person who can't be located ("hit and run drivers"); or a person who has insurance but their liability limits are inadequate.
Physical Damage to Your Auto
Covers damage to your vehicle that happens when your vehicle runs into another object, such as other vehicles, trees, light poles, etc. Handles repair costs - less your deductible.
Also covers damage to your vehicle that is due to incidents other than collision such as fire, theft, hitting an animal, vandalism, earthquake, flood or hail.
Coverage to Fill Common Gaps
Hired and Non Owned Auto Liability
Generally a commercial auto policy only protects against losses involving company-owned vehicles, so it is important to add "non-owned" coverage to extend liability to autos that employees hire or use at the Insured’s direction for the purposes of conducting business.
Drive Other Car
Coverage for business drivers without a personal auto insurance policy.