Commercial Auto Insurance Overview
Many business owners believe their personal car insurance policy covers them for work uses. But when it comes time to file a claim, you might be left with large out of pocket expenses.
A personal auto policy is designed to cover individuals, not business entities, and often exclude many business-related risks. After all, businesses have many concerns private individuals don't share, such as increased liability risks.
The differences between commercial and personal auto insurance are many, but the main distinctions lie in extent and purpose of coverage. Besides having higher liability limits, commercial auto insurance may also include coverages like:
- Any auto liability, which extends the liability coverage you have on existing commercial vehicles to any new vehicles you purchase, as well as hired and non-owned vehicles.
- Rental reimbursement with downtime, which helps cover the costs incurred to temporarily replace an inoperable commercial vehicle.
- Hired vehicle coverage, which protects the insured while driving any vehicle that is rented by the insured or an employee.
- Non-owned vehicle coverage, which protects your employees when they drive their personal vehicle for company business.
Determining if you're a good fit for commercial auto insurance can be a complex decision. Marsh can help you decide what auto insurance coverages you need.
Who needs commercial auto insurance?
If you can answer "yes" to any of the following questions, you may need commercial auto insurance:
- Are any of your vehicles used for pickup or delivery of goods, including supplies and materials?
- Are any of your vehicles owned or leased by a partnership or corporation?
- Are any of your vehicles registered or titled to a business, corporation, partnership, or DBA (Doing Business As)?
- Do any employees or non-listed drivers drive any of your vehicles on a regular or occasional basis?
- Do any of your vehicles have equipment installed such as ladder racks or permanent toolboxes that are used to support your business?