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Commercial Auto Insurance

Commercial auto insurance is a requirement for both businesses who own a fleet of vehicles or oversee a group of commercial drivers. Assessing whether a professional needs personal insurance or commercial insurance can be difficult for some because there is a fine line between the two in some situations. This is why it is very important for professionals and business owners to understand the differences between private passenger auto insurance and commercial insurance before they purchase and customize their auto insurance policies. A business with sole proprietorship structure, a small LLC, and even larger corporations can all have a need for commercial auto insurance. It is essential that business owners and executives in charge of a companies insurance portfolio know what questions to ask, what coverage options are available, and what their budget is before investing in an auto insurance policy.

Questions Business Owners Must Ask to Determine If They Have a Need for Commercial Auto Insurance

For business owners and independent contractors who are not sure whether or not they need business insurance, choosing an auto insurance policy can become an intimidating, overwhelming, and daunting task. There is no need for these professionals to be intimidated, as there are ways for a business owner or a professional to assess their situation and responsibilities to come up with an accurate answer. Professionals who answer yes to either of the questions below have a need for commercial auto insurance:

1. Is the vehicle used for business purposes on a frequent basis?
2. Is income derived from the business in question?

What Types of Businesses Need Commercial Insurance?

While it may be obvious that a fleet of commercial trucks will need to be covered by a commercial fleet policy, not all groups of professionals who need commercial insurance are quite this obvious. Anyone researching whether or not they have a need for business insurance needs to consider their daily duties and the risks they face on a daily basis. Those who drive their own vehicle for work purposes to and from different work locations must buy a business policy. Here are some of the many groups of professionals who need and should purchase a commercial insurance policy:

* Plumbers
* Electricians
* Landscapers
* Property contractors
* Couriers and delivery professionals
* Professional truckers
* Salespeople
* Realtors
* Insurance agents
* Tow truck drivers
* Mechanics
* Haulers

While these are just some of the many groups of professionals who have a need for commercial insurance, this list will help professionals get an idea of whether or not they need to buy a business policy rather than a commercial policy for their privately-owned car. Individuals who work for a company or who are subcontracted by a company should always check with the employer about the details of insurance. Some companies will purchase business insurance that will expand to contractors and employees, and others require these individuals to purchase their own commercial insurance policy.

Different Coverage Options That Are Available

For individuals who have purchased a personal auto policy, buying a commercial policy is very similar. The coverage options that are available from a commercial insurer are virtually the same as those available from a personal insurer. The major difference is that a commercial auto insurance policy does not exclude losses that occur when you are conducting business, and a personal auto policy may. For those who are not familiar with auto coverage options, here is a basic list of types of coverage that can be built into a customized commercial auto insurance policy:

* Commercial Liability

Liability in a commercial policy consists of Bodily Injury and Property Damage coverage. Bodily Injury will pay for the injuries the policyholder causes with their vehicle. Property Damage will pay for the damage that is sustained.

* Uninsured Motorist/Underinsured Motorist

Will provide the policyholder with payment to cover medical expenses sustained when they are involved in an accident with an uninsured or underinsured driver.

* Comprehensive

Pays for damage to your commercial vehicle if it is stolen, vandalized, damaged by fire, or any other non-moving incident.

* Collision

Pays for damage caused to your vehicle in a not at-fault or at-fault accident.

Commercial auto insurance policies are often classified as private and business use policies because they provide protection if a professional is driving for business use or personal use. Professionals who are shopping for a commercial policy should take time to compare rates and terms with several different insurers in their area. For business owners and contractors who want to find the best deals, is the perfect tool to use to make the process of comparing rates quick and easy.