Insurance for commercial vehicles is not just for “the big dogs.” A delayed claim payout time could result in disaster, putting small businesses at at least as much risk as larger ones. In particular, employers with fewer than a few employees shouldn’t hesitate to buy this insurance.

We’ll discuss what it covers in this post and why small business owners should care. If you’re unsure whether your company requires commercial auto insurance or how it differs from personal auto insurance, keep reading to learn more.


What is commercial auto insurance?

It offers liability protection for commercial vehicles and occasionally for personal vehicles or specific vehicle usage that are not covered by personal auto insurance. Consider commercial insurance if you own one or more company vehicles, use your personal vehicle for some business operations, deliver any kind of goods, or permit staff to use your personal vehicle for work-related functions.


Do you need commercial auto insurance?

Simply put, a personal auto insurance policy doesn’t cover the greater risk of operating a vehicle for business purposes. Additionally, operating a vehicle for business purposes may be against the conditions of a personal auto insurance policy, which means that if you are in an accident, your claim can be rejected even if you were driving your car for personal purposes at the time. It can be your best bet if you use your car for business more than three times each month.


What Does Commercial Auto Insurance Cover?

As it is well known, personal and insurance are very different. Despite this, many small company owners are still unsure of what it covers. So, here is a concise list:

Collision Protection

Accidents occur, whether they are caused by adverse weather or a preoccupied driver. In the case of a collision with a different car or something, commercial auto coverage helps to ensure that the insured vehicle is protected (tree, guardrail, mailbox, etc.). Because the insurance policy will cover the work, small company owners won’t have to worry about paying for a damaged work car out of pocket (subject to any applicable deductible).

Complete Protection

Personal insurance doesn’t often cover theft, vandalism, or fallen trees. But most commercial auto insurance policies offer coverage for them, which indicates that they are protected even if you leave your automobiles outside at night.

Coverage of Loading and Unloading

Heavy, pricey industrial equipment can be transported using covered trucks. A commercial auto insurance policy may also provide coverage for the unloading and loading operation. The firm will normally be covered under the policy if loading or unloading a covered vehicle leads to an accident involving another vehicle, an injury to an employee or bystander, or both.

Health Insurance Payments

This extends beyond the company owner. Commercial auto insurance also covers employees hurt in collisions by medical treatment. This implies that everyone who gets hurt at your business can depend on the insurance policy to pay for adequate medical care.

Uninsured drivers

Uninsured motorist insurance assures that your company won’t have to pay property or injury claims if you are hit by a driver, who is typically protected by personal auto insurance.


Why is commercial auto insurance necessary for small businesses?

Businesses of all sizes are protected by commercial car coverage from lawsuits arising from auto-related mishaps. To assist with the recovery process following an incident, there is insurance, whether it be an auto collision, an unloading mishap, or the theft of a brand-new work truck from the parking lot. But why is it necessary for small firms in particular?

There are numerous costs for small enterprises. Hiring employees who receive fair pay, first-rate benefits, and stability costs money. However, you should ensure your employees and equipment’s financial and medical security.

Commercial auto insurance is a reasonable monthly cost that guarantees your company is protected if you are sued by an uninsured driver or a pedestrian who was jaywalking. It ensures that your company can continue to appear on a project site even after a vandal damages an expensive piece of insured equipment. And it ensures that after a work truck is T-boned while crossing an intersection, the medical costs of your personnel are covered.

Although none of these things are on anyone’s wish list, anything could happen in the future. Even the most cautious among us occasionally have an accident. However, defending the company by reducing the risk with commercial auto insurance coverage is a reasonable and economical approach to keep staff members at work, vehicles on the job, and projects on schedule.


What Does Commercial Auto Insurance Not Cover?

When driving for work, insurance gives crucial protection. There are a few specific topics that aren’t addressed, though.

What this insurance often excludes is the following:

  • The items in your car that you’re transporting
  • For a business-like Uber or Lyft, ridesharing
  • Injuries sustained by workers while driving (this is covered by workers compensation insurance)
  • Accidents that happen when using rental cars
  • Accidents that happen when workers use their personal vehicles for work purposes


To sum up

Given the yearly accident death rates, it is not surprising that anything may occur. The best course of action is to insure your car with a commercial auto insurance and a  proper insurance provider.

JMJ Insurance will assist in achieving this; schedule a meeting right away to discuss the future with an expert. They will give you all the required information if you have any questions. No one can put off tomorrow, so get the best insurance provider for your requirements today.