COMMERCIAL AUTO Insurance Policy
In most states, both drivers who operate vehicles for business and employers of CDL drivers are required to maintain commercial auto insurance. States that mandate coverage determine the minimum liability coverage for bodily injury and property damage. They also determine if comprehensive coverage is required. Businesses that use personnel to transport goods or perform work related duties on the road should be protected with coverage for liability, whether mandated by the state or not. In the event of a major accident, it can make the difference between business viability and closure. There might also be personal financial implications if liability coverage is insufficient.
Commercially driven vehicles are operated by many different types of operators including couriers, delivery personnel, drivers of snow plows, and truck drivers. As a vehicle operator, it may be necessary to purchase additional insurance if the employer’s coverage is deemed insufficient. The extra protection is useful to independent contractors and drivers employed directly by the business.
There are several types of commercial auto insurance to consider if you are the owner or vehicle operator. Insurance for property damage and bodily liability are standard for most businesses with specific minimum coverage mandated by some states. Collision coverage, uninsured motorist coverage, and medical payments coverage are some of the other types of insurances that are available. Comprehensive coverage provides protection in non-accident auto mishaps arising from theft, collision with animals, fire, flood and natural occurrences. If the vehicle is being operated in an area prone to inclement weather or vandalism, it is wise to opt for this plan.