What Does Commercial Auto Insurance Cover?
Commercial auto insurance policies typically offer coverage for various risks, including:
- Liability Coverage: This covers bodily injury and property damage liability that the insured business may be legally responsible for due to an accident involving an insured vehicle.
- Collision Coverage: This pays for damages to the insured vehicle, regardless of who is at fault.
- Comprehensive Coverage: This covers damages to the insured vehicle caused by non-collision events such as theft, vandalism, fire, or natural disasters.
- Medical Payments Coverage: It provides coverage for medical expenses for injuries sustained by the driver and passengers of the insured vehicle, regardless of fault.
- Uninsured/Underinsured Motorist Coverage: This coverage protects the insured business against expenses resulting from accidents caused by drivers who either don’t have insurance or who have inadequate insurance coverage.
What Types of Vehicles Does Commercial Auto Insurance Cover?
Business-Owned Vehicles
This includes cars, trucks, vans, and other vehicles that are owned by the company and used for business purposes.
Vehicles Leased or Rented by the Business
If the company leases or rents vehicles for business purposes, commercial auto insurance can provide coverage for those vehicles.
Employee-Owned Vehicles Used for Business
In some cases, businesses may allow employees to use their personal vehicles for work-related purposes. Commercial auto insurance can extend coverage to those vehicles while they are being used for such tasks.
Commercial Auto Insurance FAQ’s
How much is commercial auto insurance?
There are several factors that factor in to the cost of business auto insurance, including:
- Vehicle make, model, and year
- Vehicle cost when new
- Gross vehicle weight, especially if it’s a truck
- Driving records for all drivers
- What the vehicle is being used for
- Claims history
- Coverage options
- Number of commercial vehicles being insured
Who needs commercial auto insurance?
Any company where employees are using a vehicle for business purposes will need a commercial auto policy. Common professions for this type of coverage include:
- Electricians, plumbers, HVAC professionals, and exterminators
- Landscapers, pool cleaners, or professional cleaning services
- Caterers and food vendors
- Carpenters, painters, and other contractors
Do Uber or Lyft drivers need commercial auto insurance?
If you are a driver for rideshare services like Uber and Lyft, or for a delivery service like Amazon Flex, Doordash, or Grubhub, you need rideshare insurance, not commercial auto insurance.
Is commercial auto insurance required by law?
Commercial auto insurance is legally required in every state except for Virginia and New Hampshire. In Colorado, state law mandates that all commercial auto policies have a minimum liability limit of $25,000 per person, $50,000 per accident for bodily injury, and $15,000 for property damage.
Can I get coverage for my semi-truck or tractor trailer?
Boxelder Insurance is proud to offer semi-truck insurance and tractor-trailer coverage!
Want to keep your business protected? Schedule a free consultation with a Boxelder insurance expert to see how we can find the right policies for your company.