What Does Commercial Auto Insurance Cover?
Each state sets their own minimums for coverage, so basic policies can vary from state to state. However, a claim against a company can well exceed the minimum coverage requirements, which is why most businesses opt for additional coverage. Beyond basic liability coverage, commercial auto insurance policies can be bundled with other coverage options, including:
- Comprehensive Insurance: This type of coverage is designed to cover the cost of damage related to many non-collision risks. Non-collision risks generally include vandalism, theft, falling debris, struck animals, broken glass, and other incidents. Such risks can be costly to repair and may even result in a total loss, which is why comprehensive coverage is usually a prudent option.
- Collision Insurance: If a company vehicle collides with another vehicle, collision insurance can cover the damage sustained by your company’s vehicle.
- Underinsured and Uninsured Motorist (UM/UIM) Insurance: Even though a business may have commercial auto insurance, not everybody on the road does, and, if they do, they may not have enough. This is where UIM comes in handy. If a company vehicle is involved in an accident with an UM or UIM motorist, a UIM policy will help close the gaps in coverage and get insured company vehicles back on the road.
- Medical Payments: If an employee is injured in an accident involving an insured company vehicle, medical payments coverage can help cover the cost of medical expenses.
- Loading and Unloading: If a business uses a loading dock, then bundling loading and unloading coverage may be a smart move. This policy option covers employees if they are injured while loading and unloading goods from covered vehicles.