What is Business Auto Insurance?
If you use any vehicle for business purposes, likely, these trips won’t be covered by your personal automobile insurance policy. Business auto insurance offers a way to protect against liability, uninsured motorist claims and physical damages when autos are used for business reasons.
Who Needs Business Auto Insurance?
You may need business auto insurance if you perform the following actions.
Use your vehicle to transport riders for a ride share service.
Deliver pizzas or food for restaurants or online services.
Visit company work sites.
Drive to meetings with clients regularly.
Transport equipment to construction sites.
How Does It Work?
Business auto insurance covers one vehicle or a fleet of commercial vehicles. Your monthly insurance payment depends on the amount of your deductible.
After you have been in an accident, you’ll file a claim. You’ll pay the deductible. The insurance company will pay the remainder of the costs.
Types of Business Auto Insurance
Business auto insurance covers a variety of vehicles including buses, sedans, SUVs, and trucks. Types of business auto insurance include:
Property Damage Liability
Medical Payments
Personal Injury
Uninsured Motorists
Comprehensive Damage (Theft, Fire, Flood, and Vandalism)
Benefits of Business Auto Insurance
The primary benefit of having commercial auto insurance is you’ll be protected in the event of an accident. After a car accident, your insurance company will conduct an investigation. If the company determines that you used your personal vehicle for business purposes without proper coverage, the claim will be denied.
Business automobile insurance can protect you against lawsuits that can ruin your financial future. If another person is injured in an accident, your insurance policy will cover the medical expenses and damages up to a certain amount.
Any time you use your vehicle for business, it puts you at a greater risk for accidents. Contact an insurance company if you�re unsure about the coverage you need.