If you are a business owner you would want your business to be protected from risks. A business can face a lawsuit if one of their commercial vehicles causes a major accident. This is why your need commercial auto insurance. Here are some things to consider when looking for a commercial auto insurance.
Whatever the size of the vehicle or the purpose of owning it, it should be titled in the name of the business on your commercial auto coverage In the event of an accident, the title holder, which is the business, may be sued. The business then has to face legal proceedings. If you don’t want issues related to the validity of your insurance coverage, then you should not put any other title on it except your business name.
There are different liability limits offered by insurance company from the basic limits to the high insurance limits which amounts to millions of dollars. 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. The consequence of a void insurance policy is that in the event of an at fault accident of your vehicles, your company will have to shoulder everything that needs to be paid since your coverage is can no longer be used. You need to be careful in this respect since similar types of vehicles can have different classification. Trucks used by electricians and trucks used as dump trucks, though the same trucks will have different classification. 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. Limousine services, food services, delivery services, and other types of vehicles are examples of automobiles used for business.
As was mentioned above, businesses can have basic or high auto insurance liability and your decision can depend on the type of business you have. It also includes uninsured motorist coverage which are the limits the insurance company will pay people riding your business vehicle who get injured in an accident caused by an uninsured motorist. There are businesses that need to get other coverage.
Your business can get optional commercial vehicle coverage like physical damage coverage for vehicles damaged by fire, flood, theft, and other risks. They will also pay for damages when the vehicle is damaged in an accident involving another vehicle or a non moving object like a wall, telephone pole, and others.