When it comes to insuring commercial auto or fleet vehicles, there are several types of insurance coverage you should consider. The specific coverage you need may depend on factors such as the size of your fleet, the types of vehicles you own, and the nature of your business. Here are some common types of insurance coverage for commercial auto/fleet:
- Commercial Auto Liability Insurance: This coverage is essential and typically required by law. It helps protect your business from liability claims arising from accidents where your vehicles are at fault. It includes bodily injury liability (covering injuries to others) and property damage liability (covering damage to others’ property).
- Physical Damage Coverage: This coverage protects your fleet vehicles against damage from accidents, theft, vandalism, fire, or other covered events. It typically includes two components:
- Comprehensive Coverage: Covers non-collision-related damage, such as theft, vandalism, fire, falling objects, and natural disasters.
- Collision Coverage: Covers damage to your vehicles resulting from collisions with other objects or vehicles, regardless of fault.
- Uninsured/Underinsured Motorist Coverage: This coverage protects you if your fleet is involved in an accident with a driver who either doesn’t have insurance or has inadequate coverage to pay for the damages.
- Medical Payments Coverage: Also known as personal injury protection (PIP), this coverage pays for medical expenses for you and your passengers, regardless of fault, in case of an accident.
- Cargo Insurance: If your business involves transporting goods or cargo, you may need cargo insurance to cover the value of the goods being transported in case of damage or loss during transit.
- Hired and Non-Owned Auto Liability: If your employees use their personal vehicles for business purposes or if you rent vehicles for business use, this coverage can provide liability protection in case of accidents while using those vehicles.
- Umbrella Insurance: This coverage provides additional liability protection above the limits of your primary auto insurance policies. It can be beneficial for businesses with significant auto exposure or higher liability risks.