What is Commercial Auto Insurance?

A vehicle collision is never good news, but when it’s one of your business’ cars or trucks, the consequences are more complicated. Business auto insurance, also called commercial auto insurance, takes all the elements of normal auto coverage and adds on extra protection.Commercial Auto Insurance insures your vehicles for physical damage and liability coverages for amounts, situations, and usage not covered by a personal auto policy.

Why do you need Commercial Auto Insurance?

In general, if an auto is used in tasks related to the operator’s occupation, profession or business, other than commuting, a commercial policy is necessary.

• If you are using your auto to transport goods or people for a fee or if you use your auto to conduct a service, you may need a commercial auto insurance policy.
• A commercial auto policy may be appropriate if you need higher limits of liability because of the nature of your work.
• Hauling considerable weight in tools or equipment or towing a trailer used to conduct your business may require a commercial auto insurance policy.
• A commercial insurance policy may be needed if employees operate the auto or if ownership is in the name of a corporation or partnership.