Why Is Commercial Auto Insurance Important For Your Business?

Aerial view of a fleet of trucks

Almost every business these days requires vehicles, which is why companies either own commercial vehicles or rent them for their day-to-day operations. This includes transporting raw materials, tools, finished products, or their workforce from one place to another.

A company needs to serve its customers well to generate profits, which is why businesses must ensure their vehicles, and the employees operating these vehicles are safe. This is done through commercial auto insurance. Let’s take a detailed look at what commercial auto insurance offers.

Vehicle Damage Coverage

Road accidents are very common in the United States. When you have your company vehicles on the road every day, it’s not uncommon for some of them to get into an accident every now and then. These accidents can damage your vehicles and lead to costly repairs.

Commercial auto insurance covers personal vehicle damage, which ensures the companies don’t have to pay out-of-pocket to get their cars and operations up and running again.

Liability Coverage

When a car gets into an accident, it can cause significant damage to someone else’s property. The company is liable to pay for the expenses incurred due to the accident if the driver is at fault.

Commercial insurance provides liability coverage for these scenarios and covers the losses as a part of the insurance plan. This can save companies from big financial losses because industrial vehicles can cause a lot of damage if they get into an accident.

Lawsuit Coverage

Sometimes, road accidents are followed by lawsuits, especially for a vehicle that’s operated by a business employee. If your vehicle has gotten into an accident and the affected party decides to file a lawsuit against your company, commercial auto insurance will cover all the legal costs of the lawsuit, like court expenses, legal formalities, and more.

Medical Coverage

If one of your company vehicles gets into an accident and any of your employees or other motorists and passengers get injured, commercial auto insurance covers the medical expenses of every person involved in the accident.

This includes any scans, medicines, surgeries, or other medical procedures a person may need after a road accident.

A truck driving on the road

Lost Wage Coverage

Commercial auto insurance is not only beneficial for businesses, but it also helps their employees.

If an employee is involved in a road accident while on the job and is unable to work due to injuries, commercial auto insurance will cover the lost wages for the employee until they can return to work.

Comprehensive Coverage

Road accidents are not the only threat affecting businesses. There are many other instances where companies can suffer financial losses on their vehicles, for example, vehicle theft, vandalism, fire accident, natural disasters, and more.

Commercial auto insurance provides comprehensive coverage and covers damage due to unforeseen incidents like these as well.

Options to Add More Security

Commercial auto insurance policies are customizable and are formulated to fit a business’s specific needs. A company can add more security options depending on their usage of vehicles, the routes they take, and the nature of their work.

Some common additions (also referred to as endorsements) to the insurance policy include gap coverage for car leases or loans, towing reimbursements, roadside assistance coverage, rental reimbursements, coverage of the cost of a new vehicle as a replacement for an older model, and more.

Offers More Compared to Personal Auto Insurance Policies

Personal auto insurance policies are designed for individuals who own and use vehicles for personal work. Getting personal auto insurance for every company vehicle is a hassle, charges greater premiums, and does not provide the level of coverage commercial auto insurance offers.

This is because commercial auto insurance policies are designed for companies and businesses that want to protect their fleet of vehicles. Commercial auto insurance policies aim to minimize the out-of-pocket expenses a company has to pay in case of any road accident or any other incident.

green and white vintage truck

If you run your own business, manage one, and have a fleet of vehicles, getting commercial auto insurance is a must for you. If you’re looking for a reliable commercial auto insurance provider, look no further.

Western Mass Auto Insurance offers some of the best commercial auto insurance policies in Springfield, Massachusetts. Their policies have lower premiums and greater coverage, helping businesses minimize out-of-pocket expenses.

Furthermore, they also offer personal auto insurance, home insurance, renter’s insurance, and more. Get in touchwith them today for more details.