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Businesses that own and/or operate vehicles as a part of their daily operations carry a number of risks on those vehicles. Any type of driving on behalf of the business—whether it’s making deliveries, transporting people to or from meetings, picking up or dropping off clients or just running general business errands—has liabilities involved that can lead to financial loss if not properly mitigated. Most states require all registered vehicles, including commercial vehicles, to be covered by liability insurance, but physical damage and other coverage types are typically only optional.
Commercial vehicles that are insured with only the minimum legal requirements for commercial auto coverage will not likely be able to provide the business with enough financial protection in the event of an accident. Below we’ll look at some of the different types of coverage that commercial insurance brokers can provide to help businesses reduce risks to their commercial vehicles.
Commercial Auto Liability Insurance
Commercial auto liability insurance helps protect a business from financial losses associated with injuries or property damage suffered by others in an accident caused by the driver of the business’s insured commercial vehicle. Commercial auto liability insurance can cover all types of commercial vehicles, including cars, SUVs, vans and trucks. Common activities done with commercial vehicles that can be covered under commercial auto liability include but are not limited to: transportation of medical equipment or hazardous material; delivering goods, documents or services to clients, customers or other businesses; transportation of other employees or clients to work-related activities and transporting supplies or food from an off-site location to the business.
Commercial collision insurance covers losses to a covered vehicle that are the result of that vehicle’s collision with “another object.” The “object” with which a vehicle collides is typically another vehicle, but could also be a stationary object such as a tree, a cement barrier or a light pole, among other things. Collision coverage pays for necessary repairs to the vehicle, or in the case of a total loss, pays for the estimated current cash value of the vehicle in order to replace it. Collision coverage is only meant to kick in if the accident was a single-vehicle collision, or if the insured was the driver at fault.
Comprehensive coverage is designed to cover losses to a vehicle from any cause other than that vehicle’s collision with another object or vehicle. It can help pay for the repair or replacement of a commercial vehicle that suffers damages resulting from certain covered incidents that do not involve traffic collisions, including but not limited to: fire, vandalism, theft, weather, glass breakage, falling objects or collisions with an animal.
Commercial auto liability insurance can be utilized to reduce a business’s risks for a variety of vehicles and situations. Agents should ask questions to uncover the unique needs of their business clients in order to help them create a customized and comprehensive coverage plan for their commercial vehicles.
About Mavon Insurance
At Mavon Insurance, we pride ourselves on our unique approach to insurance. We focus on integrity, communication, professionalism, respect and gratitude to help our clients succeed and place business in specialized markets. For more information about our products or to become an agent, please contact us today at (855) 248-1480.