According to Investopedia, Commercial Car Liability Insurance is part of a car insurance policy. It provides financial protection to a driver who harms someone else or their property while operating a vehicle.
Commercial car insurance is like personal car insurance in many ways. The difference is that Commercial insurance is designed specifically for vehicles that are used by or for a business.
Commercial car insurance offers both liability coverage and collision coverage for business vehicles and their drivers.
One good thing to know about auto liability insurance is that in many states, if a driver is found to be at fault in the accident, their insurance company will pay the property and medical expenses of other parties involved in the accident up to the limits set by the policy.
How Does Commercial Car Insurance Work?
Imagine your job is to drive a van. You take wooden boxes from point A to point B. You know this route like the back of your hand. You are driving and you get ready to cross a busy intersection. As you are crossing you see a vehicle approaching you from the wrong direction. You get in an accident. Fortunately, no one is seriously hurt. But the vehicles have been destroyed.
What happens? Your commercial auto policy kicks in and covers the damages to the van. One of the boxes flew over your head and hit you. Not a problem, Commercial Auto covers bodily injury too.
What does commercial Auto Insurance cover?
Aside from liability and collision benefits, commercial car insurance can also include coverage for things like:
- Medical payments or personal injury.
- Damage related to theft, vandalism, falling objects, or weather events. Also, those caused by uninsured or underinsured drivers.
- Rental vehicle costs if you need to rent a temporary replacement vehicle for your business.
- Rental vehicles used to transport employees or clients.
Vehicles covered by commercial auto insurance include:
- Pickup trucks
- Box trucks
- Service utility trucks
- Food trucks
Is commercial Auto Insurance a Requirement?
A certain amount of minimum coverage is required in all states. The coverage types and amounts vary from state to state. Minimum coverage is required in all states, but the coverage types and amounts vary from state to state.
Auto Liability insurance claims are complex, and many companies choose to use a Claim Management Software to help manage their policies.
TerraClaim management software can help do this by streamlining the auto claims process. It can be the link between you and vendors, and to manage your policies and the information about your insured in an orderly fashion. With practical dashboards that allow for thorough reports on both your activity and the industry’s. You can ask for a demo here