Business Auto Insurance has similar coverage parts compared to Personal Auto Insurance. However, a Business Auto Policy has a few enhancements and provides broader coverage for vehicles used for business purposes. The main components of a Business Auto Policy are Liability, Comprehensive & Collision Coverage, and Optional Endorsements.

Here are some items to consider when purchasing Business Auto Insurance

Liability Coverage

Is the most important aspect of Business Auto Insurance. This coverage part includes Property Damage & Bodily Injury Coverage. As a business owner, you need to make sure you have adequate limits since you may have employees operating your vehicles daily. Most carriers have a minimum combined single limit of $300,000 for Liability Coverage. This means in the event of a loss the total maximum amount paid for Property & Bodily Injury will be up to the combined single limit. Therefore, we typically recommend a 1,000,000-combined single limit.

Uninsured/Uninsured Liability Coverage

Most states require this coverage as well. However, this is a benefit, as it will provide protection to your business if someone hits you and does not have insurance, or not enough coverage. This also protects from “Hit and Run” incidents. In most cases, the coverage limits match your combined single limit for Property Damage & Bodily Injury Coverage. Another key point; claims filed under this coverage will not increase your insurance premium.

Comprehensive & Collision Coverage

Comprehensive Coverage provides payment to you if damage is caused by the following: Fire, Vandalism, Theft, Weather, Animal Contact, and Glass Breakage. These claims will also not raise the cost of your insurance. Collision Coverage provides payment for your car damages resulting from an accident caused by you. Unfortunately, these claims are considered “at-fault” and could possibly raise your insurance premiums.

Optional Endorsements

Many additional endorsements can be added to a Business Auto Insurance program. A few of the most important ones are: Hired & Non-Owned, Drive Other Car, Rental, Towing, Loss of Income, Transfer of Rights of Recovery, and many more. The point here is to have an insurance agent that can help you make the right choices for your business.

Still Have Questions About Business Auto Insurance?

The primary reason is your personal auto policy will not pay a claim if you have an accident while using your vehicle for business purposes. Business Auto Insurance will cover accidents while using a vehicle for business, or personal reasons. You also may be required by contract with a client be required to have a Business Auto Insurance policy.

Business Auto Insurance usually costs more than Personal Auto Insurance. The main reason why is Business Auto Insurance provides more coverage. However, in some cases if you have a work van or truck, a Business Auto policy could be cheaper.

You should purchase a Business Auto Insurance policy from an experience commercial insurance agent. With so many different coverage options, endorsements, and policy selections you will need someone to help you find a program to fit your needs.