Do you own a business that uses vehicles in the operation of that business? If so, then you need commercial auto insurance. It is auto insurance except it is specifically for business vehicles. This coverage is required for businesses that use one or more vehicles as part of their operations. Cars, trucks, vans or other motorized vehicles used in the company can be covered.
Commercial insurance is not the same as auto insurance for individuals. Insurance for personal cars is insufficient for autos used in a business situation. Commercial coverage protects against specific situations common for business owners.
There are several reasons why you need commercial auto insurance for your business. First, you can use a higher liability amount. Vehicles driven daily for business have a higher risk of getting into an accident. And you also run a higher risk of being sued following an accident. Liability helps with that. There is more wear and tear on a vehicle that transports equipment or passengers. And since your vehicle is necessary for business, you want to make sure it can quickly be repaired or replaced should the need arise.
The basic types of coverage usually include coverage for bodily injury and property damage. There is collision to pay to repair or replace the vehicle following a mishap. Comprehensive pays for damage that is not caused by another vehicle. Medical payment is for individuals involved in an accident who need medical treatment. And uninsured motorist coverage pays claims involving a person without insurance.