How Commercial Auto Insurance Supports Your Fleet
When your organization depends on a fleet of vehicles to conduct business, having appropriate commercial auto insurance is crucial.
Protecting Your Investment
One of the primary ways commercial auto coverage supports your fleet is by safeguarding your vehicle investment. Fleets represent a substantial financial investment. Insurance can provide a protective barrier against the financial ramifications of unforeseen events like accidents, theft or natural disasters.
Commercial auto policies ensure that the financial burden of repairing or replacing vehicles does not fall entirely on your business.
Mitigating Liability Risks
When your fleet is on the road, there’s a risk of incidents that could lead to liability claims due to third-party property damage or injuries. A commercial auto policy may help cover the costs associated with such claims, including legal defense fees, settlements or judgments awarded in lawsuits.
Facilitating Business Continuity
In the event of an accident or loss of a vehicle, the downtime can significantly disrupt your business operations. Commercial auto coverage often includes coverage that can help mitigate this disruption by covering the cost of renting a temporary replacement vehicle, ensuring that your business operations can continue with minimal interruption.
Commercial Auto Insurance Customization
Commercial auto insurance typically includes several core policy types, each designed to address vehicle and driver risks in a business setting. Your agent may recommend the following:
- Commercial auto liability insurance—Companies using vehicles to conduct business must typically carry this coverage to comply with state laws. It may help cover third-party accident-related damages.
- Physical damage coverage—Collision and comprehensive coverage may help replace or repair your company vehicle after a covered accident or incident.
- Uninsured/underinsured motorist coverage—This policy may help protect your company from drivers who choose not to purchase insurance or don’t have enough liability coverage to pay for the damage or injuries they cause in an accident.
- Hired and non-owned auto coverage—If your business uses rented or employee-owned vehicles for business purposes, this coverage can provide liability coverage.
- Cargo coverage—This policy may help pay to replace lost or damaged cargo while being transported by your company vehicle.
Each company has specific commercial auto insurance needs, so it’s important to discuss your situation with an insurance professional to determine the most appropriate coverage for your business.