Why Does Your Business Need a Commercial Auto Insurance?
Why Does Your Business Need a Commercial Auto Insurance?

Commercial Auto Insurance Policy provides coverage to the cars, trucks, vans or other vehicles for their business-related usage. It covers everything; from small vans, to large fleets. Any business that regularly makes use of owned automobiles, must acquire this policy to maintain smooth operations.

Note: Get Access to the Best Commercial Auto Insurance Policy Near Me.

Definition – Commercial Auto Insurance

A Commercial Auto Insurance Policy is an insurance policy that covers physical damages and liability coverages for business owned vehicles. Its coverage limits, and scope vastly outpace a personal auto insurance policy. Automobiles, company cars, company trucks, and more fall under its potential coverage.

Covered Automobiles and Their Types

The policy covers box trucks, food trucks, work vans, and several kinds of utility trucks can receive coverage. The coverage can further extend to employees operating the vehicle, and possibly the equipment inside the vehicle. This coverage is sometimes also known as, commercial car insurance, truck insurance, or fleet insurance. Almost any vehicle that is used for business purposes can receive coverage under the Commercial Auto Insurance Services. You need to ask your insurance provider for details.

The Necessity of Commercial Auto Insurance Coverage

Personal auto insurance policies are limited in their scope. There are several business usages and vehicle types which are excluded from its coverage. These policies are not meant for business. That is why, they have such limitations. Only a commercially inclined policy can provide a full range of coverage to automobiles for business use, such as;

  • Liability Coverage
  • Collision Coverage
  • Comprehensive Coverage
  • Medical Payments, or personal injury protection
  • Uninsured Motorist Coverage and more!

A commercial vehicle insurance expands on eligibility, definitions, coverage scope, exclusions, as well as limits. It is vastly superior to a personal auto policy.

Coverage Parameters in Commercial Auto Insurance
  • Bodily Injury Liability Protection

The insurance policy pays for any injuries sustained or deaths resulting from an accident. Specifically, an accident, for which you are at fault. The policy also provides you with a legal defense from liability.

  • Property Damage Liability Protection

You can receive coverage if your vehicle damages someone’s property due to an accident. The policy also provides you with a legal defense from the liability.

  • Combined Single Limit Protection

Liability insurance policies generally offer separate limits for bodily injury claims, or property damage claims. A Combine Single Limit (CSL), provides merged coverage for different kinds of liabilities. It has same dollar amount of coverage per occurrence, whether it consists of bodily injury, or claims of property damage. It also extends coverage despite its extension to a single person, or several.

  • Medical Bills Coverage

The policy provides coverage on a no-fault basis. It pays for medical expenses of the driver and the passengers in your automobile.

  • Uninsured Motorist Coverage

It pays for the injuries, and in some cases, property damage. This coverage pays when the damage is caused by an uninsured motorist, or a hit-and-run driver. Some policies also include underinsured motorists.

  • Comprehensive Physical Damage Coverage

The policy pays for damages to your vehicle from theft, vandalism, weather, and various other perils.

  • Collision Protection

The policy pays for damages that happen to your automobile, when it is hit by another object.

The Policy for Tools and Materials in a Vehicle

Damage to any unattached tools, or materials in your vehicle do not receive coverage in a Commercial Auto Insurance Policy. Coverage for these damages fall under a Business Owner’s Policy, or a General Liability Insurance Policy.

Protection for the Drivers in Commercial Auto Insurance

A Commercial Auto Insurance extends its coverage to employees, family members, and other drivers. This policy far surpasses the limits set by a personal auto insurance policy.

Coverage for a Trailer in Commercial Auto Insurance Policy

It depends on the size of the trailer, such as;

  • If the trailer is less than 2,000 pounds gross vehicle weight, it has automatic coverage for liability. However, you must to add it to your policy for full coverage from theft, or damage.
  • If the trailer is more than 2,000 pounds, it won’t have automatic coverage, unless you add it to your policy.
Other Forms of Insurance Services Offered by SG Financial Inc.

SG Financial Inc. can assist you in acquiring many forms of insurance services for business or personal use. Such as;

General Liability Insurance:

It covers you from liabilities resulting from damage to business property, damage or bodily injury to others.

Professional Liability Coverage:

It covers the liabilities resulting from services you provide. Specifically, if you make an error, and/or if someone sues you.

Business Owner’s Policy:

It covers merchandise and equipment of a business. it also covers bodily injury to others or property damage on your premises. Lastly, it covers damage to the premises and business interruption expenses.

Workers’ Compensation Insurance:

It covers your employees if they’re injured while working.

Buy the Best Commercial Auto Insurance Policy in Texas

SG Financial Inc. provides the most competitive rates, and a great service. We can allow you to access the Best Commercial Auto Insurance in Plano, Texas. We have the resources and the motivation to pay your claims.

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