There are many risks facing a business which every business would want to be protected from. Business vehicles that causes an accident can put a business under a lawsuit from the people injured in the accident. This is why your need commercial auto insurance. If you are shopping for commercial auto insurance, consider the points given below.
Every vehicle the business owns should be under the business name, whatever its size, kind, or the purpose that it is being used for. In the event of an accident, the title holder, which is the business, may be sued. This will bring your business to court. This insurance coverage should not be named any other except the name of the business since you can have issues related to the validity of the insurance coverage.
You can choose between the basic limits or high insurance limits which can reach up to millions of dollars, which are offered by insurance companies. Your business can lose plenty of assets if your insurance coverage is basic only, if an accident caused by one of your vehicles leads to the death and injury of many. If you take the high insurance limit, then you can protect your assets in the event of an auto accident that leads to death or injuries.
Voiding of insurance coverage is possible if you fail to classify your commercial vehicles properly. If your insurance coverage is voided, you will have a useless policy and puts your business at the risk of losing assets if it gets involved in an at fault accident. Even if you have similar vehicle, they may have different classifications according to their use, so you need to be careful in this. If there are two similar trucks and one is used by an electrician and the other is used as a dump truck, then these two will have different classifications. these trucks belong to different categories and so they also have different premium amounts.
Commercial auto insurance coverage is required for automobiles that are titled under a business. Some examples of these automobiles are limousine services, food services, delivery services, and many others.
Depending on the kind of business you have you can get basic auto liability or high auto liability. If your vehicle gets in an accident caused by an uninsured motorist and your employees riding the vehicle gets injured, then the insurance company pays the uninsured motorist coverage. You can get other coverage depending on your business.
Your business can get optional commercial vehicle coverage like physical damage coverage for vehicles damaged by fire, flood, theft, and other risks. Damages caused by non moving objects like posts or walls in an accident will also be paid by the insurance company.