There are many factors that go into determining the right amount and type of coverage for your business, including: whether or not you use the vehicle for personal use, how many miles per year it is driven, if there are any passengers on board when used for work purposes and such. As per the Bureau of Labor Statistics, 40% of all work-related accidents involve incidents while on a roadway. This fact brings to light how vital a reliable insurance coverage is for business vehicles to cover losses due to road incidents.
But on a general note, commercial vehicle insurance covers damage to a company vehicle and bodily injuries due to you or an employee’s actions. With that in mind, the policy offers the following insurance coverage:
Auto accident liability coverage
This coverage provides financial backup against legal costs if you are sued by a third party who was involved in an accident caused by you or your employee in your business vehicle. In addition to that, it also helps to pay for repairs to the third party’s car or their medical expenses.
For example, an employee hits another car while parking the company van while on a delivery run. The employee is at fault in this situation. If you have commercial vehicle insurance, it can cover the cost of repairs to the third party’s car. The policy will also cover for any injuries in such cases.
Medical payments coverage
If your commercial vehicle insurance includes medical payment coverage then it will cover the cost of your and any passenger’s medical expenses while in an accident involving the company vehicle. This coverage is applicable regardless of which party caused the accident.
Let’s say you have a lawncare business and an employee is driving the company van towards the client’s residence. While on the way, the employee is met with an accident and is brought to the hospital in an ambulance to treat his injuries. Your company’s commercial vehicle insurance will pay for the ambulance ride and the treatment.
This coverage will cover your car from damages that are not caused by a collision. Instances where this coverage comes into play are:
- Weather damage
For example, let’s say you’re driving your company vehicle in a thunderstorm. Suddenly, a tree is hit by lightning which causes a large branch to fall on your car. This damages its hood and ends up breaking the windshield. In this case, the coverage will pay for the necessary repairs and replacement of the parts for the car.
As its name suggests, this coverage pays for the repair costs for damage to your car from an accident. In addition, this coverage will also cover the costs when you hit inanimate objects. Such as fences, lamp posts, fire hydrants and more.
Uninsured & underinsured motorists’ coverage
This coverage is applicable in cases where your company car is involved in an accident with another driver who is not insured or doesn’t have enough insurance. According to the ASPE, almost 30 million Americans are uninsured as of 2020.
Having this policy makes sure that you do not have to pay for the medical expenses if you injure the uninsured or underinsured person in an accident.