How are commercial and personal auto policies different?
If your business requires the use of company vehicles, then you need the protection offered by commercial auto insurance. However, many business owners wonder what makes commercial auto coverage different than personal auto insurance. Here’s what you need to know about this type of business insurance.
When you compare personal and commercial auto policies, you’ll notice that both types of insurance offer similar forms of coverage. For instance, both personal and commercial auto policies will offer coverages such as collision, comprehensive, bodily injury liability, property damage liability, medical payments, and so on. The main difference between these two types of insurance is the amount of coverage that they offer. Because businesses face higher liability risks and have more assets to protect than individuals, commercial auto policies offer higher coverage limits and are designed to cover more complex legal. Additionally, because businesses can use standard cars, vans, and even delivery trucks, commercial auto policies are designed to cover a wider array of vehicles than personal car insurance.
Commercial auto insurance is designed to cover accidents that occur when you or your employees are using a vehicle for business purposes. While this coverage obviously encompasses company-owned vehicles, it can also extend to your employees’ personal vehicles when they are using them for business-related purposes.
Any business that routinely uses vehicles to carry out operations needs commercial auto insurance. This includes businesses that handle the following:
- Transporting goods or equipment
- Delivering goods or services
- Driving around clients or employees
- Renting out company vehicles for client use
- Hauling work-related loads
- Towing trailers used for business purposes
This is what makes commercial auto insurance different from personal car insurance policies. Do you have additional questions about your business insurance? If so, then contact the experts at Phocus Insurance in Phoenix, Arizona. Our dedicated team is eager to assist you with all your commercial coverage needs today.
