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Commercial auto insurance is a business insurance policy that applies to autos owned by or used in your business that protects your business against liability for damages caused by accidents involving your business autos and provides certain compensation to occupants of your business autos injured in accidents. If your business owns vehicles, a commercial auto insurance policy can provide valuable financial protection to you and your employees while driving a company owned vehicle or a hired or personally-owned auto in your business operations. It's important to know that a personal automobile insurance policy usually does not cover vehicles used in the operation of your business. What Does Commercial Auto Insurance Cover?Commercial auto insurance typically provides coverage for: liability damages; collision or comprehensive physical damage loss to your business autos; medical expenses for injury to occupants of your business autos; and damages sustained by occupants of your business autos due to the negligence of an uninsured or underinsured motorist. The commercial auto policy provides physical damage coverage for vehicles you own, lease, hire or use in your business and liability coverage for bodily injury and property damage caused to others by your use of the insured business vehicles. It can include two types of physical damage coverage for your insured vehicles:
It also includes two types of liability coverage:
Do I Need Commercial Automobile Insurance?If you own, lease, hire or use vehicles for business, you should minimally carry liability coverage. It's mandatory in most states for owned autos. In addition, businesses that move goods or people across state lines are required by federal law to have it. For larger commercial vehicles, you may need a commercial truck insurance policy. You need commercial auto insurance for vehicles that:
You should also carry commercial auto coverage if you or your employees use vehicles for work-related tasks, such as:
Important to know: You may be required to get additional coverage if you use vehicles for certain functions, including:
How Does Commercial Auto Insurance Work?Commercial auto insurance covers vehicles used for business and the people who drive them. If you or a driver of your business vehicle causes an accident that injures another person or damages their property, they can file a claim on your policy and bring a lawsuit against you or the driver. Your liability insurance will cover costs to pay damages on the claim up to the policy limit. You or your business will be responsible for any amount of damages above the limit. Your liability insurance will also cover the costs to defend you or the driver of your business vehicle in an accident-related lawsuit, separate from the policy limit. What are the Coverages Included in a Commercial Auto Insurance Policy?Many types of coverage are available. Some of the most common coverages include:
These coverages are available for autos you own and may be available for autos you hire or lease or for non-owned autos (autos used in your business that you don't own, hire or lease). Some of these coverages vary by state. If your autos are garaged out of state, check with your agent to ensure you have adequate coverage for the states where your insured autos will be used. Is Personal Use Covered by a Commercial Policy?Personal use of a business vehicle is generally covered by a commercial policy. However, certain coverage for family members is often not provided. Check with your agent to determine whether you need additional coverage for family use. How Do I Purchase Commercial Auto Insurance?You can purchase commercial auto insurance through an independent insurance agent. They'll take time to understand your business operations and vehicle use so they can find optimal coverage at a fair price. Your agent will also guide you through the claims process when an incident occurs. Using one agent for all your business insurance may help ensure your business has maximum protection and you aren't paying for unnecessary duplicate coverage. How Much Does a Policy Cost?It depends. The price is based on factors including:
An agent can help you find affordable coverage. Are Premiums Tax-deductible?Sometimes they can be deducted when a vehicle is used for business. Check with your tax expert to find out for sure. More Insights & Expertise
Find SolutionsDiscover products by industry: Tailor your Solution Find an AgentNeed an Agent?Get the personal service and attention that an agent provides. Find a local agent in your area: What is covered under specified causes of loss coverage?Specified Causes of Loss – The insurer agrees to pay for loss to a covered auto or its equipment only for losses specifically listed in the policy, such as fire, lightning, explosion, theft, windstorm, hail, earthquake, flood, mischief or vandalism.
What is a loss condition under the business auto coverage form?Which of the following is a loss condition under the Business Auto Coverage form? Legal action against the insurer (Other loss conditions include appraisal, duties, and transfer of rights of recovery.)
Which are included in the five parts of the business auto coverage form?Managers should not rely on personal auto insurance as those typically do not cover any damages done in the course of business. The BAP usually consists of five sections, which are (1) covered autos, (2) liability coverage, (3) physical damage coverage, (4) business auto conditions, and (5) business definitions.
Which of the following is not covered by a business auto policy?1. A. The business auto coverage form covers a business's owned, nonowned, and hired autos against liability and physical damage losses. This form insures all drivers except for garages, truckers, and motor carriers.
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What is covered by the specified causes of loss coverage of the business auto coverage form?
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