How Commercial Auto Insurance Covers Small Business Owners

Company vehicles are essential to the daily operations of many small businesses in California, making commercial auto insurance a valuable way to help keep work on track.

What Is Commercial Auto Insurance?

Commercial auto insurance is specifically designed for business vehicle use, and addresses needs that personal policies may exclude. If vehicles are used on job sites or for tool transport and delivery, personal auto insurance typically will not cover accidents or damage tied to these, or other, business activities.

What Does This Policy Cover?

A standard commercial auto policy typically includes the following:

• Physical damage coverage may consist of collision and comprehensive coverages and can help pay for repairs or replacements if your business vehicles are damaged in a collision, stolen or affected by fire or vandalism.
• Hired and non-owned auto coverage may provide limited coverage for vehicles you rent or for employees’ personal vehicles used for business purposes
• Liability coverage may help pay for injuries or property damage if you or an employee causes an accident involving other parties while driving for business purposes.
• Uninsured/underinsured motorist coverage may help manage losses if another driver causes an accident and lacks enough insurance.

Why Is It Important for Small Businesses?

Many businesses that use vehicles for work are required to carry a minimum level of liability insurance. Commercial auto insurance can help you meet legal requirements and manage costly claims, lawsuits and repairs. Without it, an accident could risk your company’s finances and reputation.

How Our Team Can Help

At Bright Road Insurance Services, we help local small business owners assess their needs and recommend commercial auto insurance. Our team can help you review options and customize coverage for your vehicles and operations. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.