When Does Your Client Need Commercial Auto Insurance?

When Does Your Client Need Commercial Auto Insurance?If your commercial lines insurance client has employees that do any type of driving on behalf of their business; whether it be making deliveries, transporting fellow employees or customers to other destinations or just running general errands, they likely need commercial auto insurance coverage.

Too many business owners mistakenly assume that their employees’ or their own personal auto liability coverage is enough to cover any accidents that may happen while an employee is driving for work-related purposes, but that is far from the truth. In fact, most personal policies contain specific business-related exclusions that can leave the business owner vulnerable to very costly litigation if their employee does get into an accident. For smaller businesses operating on a limited budget, one auto liability lawsuit could be enough to put them out of business for good. With commercial auto insurance, you can help your clients close this insurance gap and give them the financial protection and support to handle an accident or auto liability lawsuit.

What is Commercial Auto Insurance?

Commercial auto insurance is a combination of physical damage and liability coverages designed to cover the amounts, situations, and usage types that are excluded by personal auto policies. This type of commercial lines insurance covers a variety of vehicles, including personal vehicles used for business, company cars and a wide variety of commercial cargo and service vehicles. Commercial auto insurance helps protect business owners from the costly expenses associated with injuries or property damage suffered by others in an accident caused by the business owner or one of their employees in an insured commercial vehicle.

Who Needs Commercial Auto Insurance?

Any business whose owners or employees use personal or commercial vehicles for business purposes should carry commercial auto insurance. Some common activities that can be covered under commercial auto liability include but are not limited to:

  • Transportation of clients to or from an airport or other locations.
  • Transportation of other employees to meetings or conferences.
  • Errands such as picking up food or office supplies from an off-site location.
  • Transportation of medical equipment between different work sites.
  • Transportation of goods across state lines
  • Delivering physical items or documents to other businesses or work sites.
  • Delivering goods or services to customers’ homes.

What Does Commercial Auto Liability Insurance Exclude?

Like any other insurance policy, commercial auto liability insurance comes with a number of exclusions. Common exclusions are: intentionally-caused injury or damage (ex: road rage), claims against the employer by their employees (non-third-party claims) and bodily injury or property damage caused by a rented, borrowed or other non-owned vehicle unless specifically added to the policy.

Commercial auto insurance is an excellent commercial coverage that is designed to fit a variety of vehicles and situations. Insurance agents should make sure they listen to their client’s individual needs in order to help them create a customized and comprehensive coverage plan.

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.