Commercial Auto Insurance - An Overview

The commercial auto policy provides insurance coverage for cars and trucks used in a business. Policies can include protection for owned and non-owned vehicles.

Issues to Consider:

-Is your liability coverage adequate? A minimum coverage for most businesses is $1,000,000 with additional limits provided by a commercial umbrella policy.

-Is your liability coverage for "any auto"? Some policies only cover your owned vehicles. What about the liability that comes from employees driving their personal vehicles on company business?

-Does your policy include liability coverage for non-owned and hired autos? Does it cover rented vehicles or employee owned vehicles used in your business?

-Match your uninsured motorist insurance limits to your liability limits.

-Do you need "drive other car" coverage? If an employee uses a company car for personal use and does not have their own personal auto insurance there could be a gap in coverage.

-Consider rental reimbursement insurance that will pay for the rental of a car or truck if yours is damaged in an accident.

-Review special use vehicles like dump trucks and delivery vehicles for adequate coverage for a temporary rental if the truck is taken out of commission in an accident.

-Review your deductibles. Higher deductibles can reduce your premium.

-Buy collision damage waiver coverage when you lease a car or truck. Short term rentals from Hertz or Avis create special risk management issues. Always buy the rental car company's collision insurance or use a credit card that provides collision protection as a cardholder benefit.

-Racing and stunt driving are excluded from coverage by most commercial auto insurance.

-Repair facilities should purchase a garage policy to provide liability coverage as well as coverage on customer's vehicles.

-Consider garage keepers' insurance if you have a valet parking customer's cars, repair vehicles, or if you "take possession" of customer's vehicles in some way.

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