Why Is Commercial Auto Insurance Important?

Do you operate a business that requires you to have a vehicle to deliver your goods and services to your clients?  Do you have a fleet of delivery trucks that are on the road 24/7?  Small firms who own or operate vehicles have the same risks as large firms.  You are at risk from losses arising out of accidents that can damage your vehicles and cause injury to third parties and employees.

What Kinds of Cars Are Insured by Commercial Auto Insurance? 

Business cars come in a variety of shapes and sizes, from your personal car that you use to transport food to the neighborhood farmer’s market to the trucks that your construction company uses and beyond:

  • Cars
  • Cargo Van
  • Long Haul Trucks
  • Contractors Trucks
  • Machinery
  • Pick-Up Trucks
  • Box Trucks
  • Food Trailers
  • Truck Dumps
  • Ice Cream Trucks
  • Food Delivery Vans

Commercial auto insurance can provide your firm with security and protection from devastating liability claims arising from an accident involving your vehicle.  Commercial auto insurance is normally offered on vehicles owned by a commercial business and can include the following:

  • Bodily Injury Liability – Coverage for damages involving bodily injury to third parties for which you become legally liable.
  • Property Damage Liability – Coverage for damage to the property of others.
  • Medical Payments – Coverage for reasonable and necessary medical expenses for those who are accidentally injured while in your automobile or while getting in or out of your automobile.
  • Personal Injury Protection – Coverage for medical, hospital, rehabilitation, loss of wages or loss of services costs resulting from injury to you or any guest injured while in the vehicle.
  • Comprehensive – Protection for the loss of or damage to, your vehicle and equipment from all causes except collision, subject to the terms and conditions of the policy.
  • Collision – Protection for collision damage to your automobile and its equipment, subject to the deductible and terms of the policy.
  • Uninsured Motorist – Coverage allows you to recover bodily injury damages due to an accident where the other party does not have liability insurance and is legally liable.
  • Underinsured Motorist – Coverage allows you to recover bodily injury damages due to an accident where the other party is found legally liable and does not have adequate liability limits.
  • Hired Auto Liability Coverage – Covers liability for automobiles hired under contract on behalf of, or loaned to, the named insured.

Who Needs Commercial Auto Insurance?

There are a variety of situations in which you should think about purchasing commercial auto insurance for a company vehicle:

  • If you run a business where employees drive their own cars to work,
  • You run a caterer or food truck business.
  • You utilize a vehicle to move items for hire.
  • You work as a contractor and transport tools in your automobile.

You’re putting your company in danger and running the chance of losing thousands of dollars if you don’t have this business insurance coverage.  The costs mount if you are involved in an accident.  Your car and anyone else who was in the accident may need to be repaired or replaced.  Medical costs for you, your passengers, and other injured drivers can quickly mount up.  You could be looking at exorbitant fees if there is property damage, potential legal action, or even the death of someone who was hurt.

If you already have a personal auto insurance policy, what then?  You still require coverage for your commercial vehicles.  Personal auto insurance coverage might not pay claims if you have an accident while operating a business.  Think about paying those bills!

Whether your company needs to purchase Commercial auto insurance on one vehicle or a fleet, there are solutions for you.  We understand you may have questions regarding commercial automobile insurance, and we are ready to help you.

Commercial and personal auto insurance is very similar regarding the basic kinds of protections they offer.  A commercial policy, however, has some important advantages over a personal one, including the ability to protect you, your employees, and your company from exposure to uncovered liabilities brought on by serious accidents.

DSM Insurance was formed in 2008 by insurance professionals with over 50 years of combined experience in the insurance industry….experience includes; senior officers of regional insurance companies & wholesalers, reinsurance brokers, personal & commercial insurance production agents, agency owners, underwriting managers & agency directors. DSM has the capability to place virtually all lines of business insurance.

DSM agencies are members of Trusted Choice. Trusted Choice is an agency recommendation engine. They represent Independent Insurance Agencies that agree to deliver exceptional client experiences. By maintaining standards that exceed expectations, Trusted Choice agencies put the needs of their clients first. Because they’re independent, they’re not restricted to the limited products provided by one single insurance carrier. As an Independent Agency recommended by Trusted Choice, DSM works for you, not for the insurance company.