Commercial Auto Insurance for Small Business – What You Need to Know

A small business, whether with one commercial vehicle or a large fleet, needs auto insurance to stay covered against accidents and collisions. This is because a single mishap can lead to expensive claims and settlements that could deplete their finances. With commercial auto insurance in place, you can protect both your business vehicles and employees from accidents and resulting liabilities.

Let us discuss the coverages offered by commercial auto insurance and what makes it essential for small businesses.

What Does a Commercial Auto Insurance Policy Cover?

A commercial auto insurance policy offers the following coverages to protect your small business from unfortunate on-and off-road mishaps.

  • Bodily Injury Coverage – Pays for the injured party’s medical expenses, lost wages, and funeral expenses (in fatal incidents).

  • Property Damage Coverage – Pays for the damage you/your employees cause to someone else’s property.

  • Underinsured Motorist Coverage – Covers you against accidents caused by drivers without sufficient liability coverage.

  • Collision Coverage – Covers damage/repair to your vehicle caused by an accident with another vehicle or object.

  • Comprehensive Coverage – Pays to repair your vehicle damaged by fire, theft, vandalism, and other natural disasters.

  • Medical Payments Coverage – Covers your and your passengers’ medical expenses incurred from an accident.

  • Uninsured Motorist Coverage – Covers accidents caused by drivers without auto liability insurance.

  • Loading and Unloading Coverage – Covers commercial vehicles involved in loading and unloading tasks against injuries to a bystander or employee and an accident with another vehicle.

Why Is Commercial Auto Insurance Important for Small Businesses?

While commercial auto insurance is essential for all businesses, it is a lifeline for small businesses, because they often have a limited budget and multiple expenses, including but not limited to:

  • employee wages,
  • rent,
  • monthly running expenses,
  • loan payments

If you are a small business owner, being liable for an auto accident involving your business vehicle and settling claims out of pocket can be difficult.

Nonetheless, accidents and collisions may not be the only sources of claims and lawsuits. What if your business vehicle is vandalized, stolen, or damaged by natural disasters?

These incidents can also result in expensive financial losses. This is where commercial auto insurance comes in to save the day. It ensures your business vehicles are covered at every turn while being used for completing business-related operations. Moreover, it covers your employees who drive your insured commercial vehicles. However, the coverage extended to them will vary depending on the policy type.

Besides, most commercial auto insurance policies cover your employees’ vehicles when they are used for business operations such as for

  • driving to meet clients
  • transporting goods to your worksites
  • hauling goods for delivery

Considering all these risks and related expenses, buying a commercial auto insurance policy is an effective way to ensure your business vehicles are covered against all potential automobile-related litigations.

Secure Your Peace of Mind While On the Roads with J Archer Insurance Group

At J. Archer Insurance Group, we are committed to delivering best-in-class commercial auto insurance solutions tailored to your business vehicles and their usage. With us, you can get unmatched protection at all times against every risk. Contact our insurance experts today to find the right policy that perfectly meets your insurance needs and budget.

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