Commercial vehicle insurance is a form of insurance policy designed mainly for vehicles used for business activities. People who buy this auto insurance policy agree on a contract with an insurance provider through which the latter helps cover any financial losses from damages or accidents caused to the former’s commercial vehicles while they are on business duty. For new business owners, here are some key details regarding commercial vehicle insurance to remember.

Scope of commercial vehicle insurance coverage

A few key elements covered by a commercial vehicle insurance policy are listed below.

Bodily injury liability

Commercial vehicle insurance pays for injuries caused accidentally by a commercial vehicle to others. It also covers the legal costs if the policyholding business is sued over the accident.

Property damage liability coverage

It pays for the damage caused to another person’s property by the commercial vehicle. Similar to bodily injury liability, legal costs are covered if the other individual sues the business over the property damage.

Personal injury protection

It pays for the healthcare-related costs and other expenses (like lost wages) for business owners and passengers if they have met with an accident while using a commercial vehicle. The highlighting factor here is that it can be used regardless of whoever caused the accident.

MedPay coverage

This element covers the healthcare expenses and other costs (including funeral fees) for employees affected by commercial vehicle accidents. This part of the insurance policy does not cover lost wages and can only be used in small amounts ranging from $1,000 to $5,000.

Collision coverage

This aspect of commercial vehicle insurance covers the damage or destruction caused to a commercial vehicle and its replacement or repair costs.

Benefits of commercial vehicle insurance

With so many different types and diverse ranges of coverage, commercial vehicle insurance can benefit businesses in various ways. Some advantages of having commercial vehicle insurance are listed below.

Protection beyond personal auto insurance policies

Personal auto insurance is a helpful tool to protect one’s finances concerning their vehicle. However, it is also somewhat limited in its scope of coverage. Personal auto insurance does not cover the costs of accidents for vehicles that are used for business purposes. It is why, if a personal vehicle is used for business purposes, business owners must pay for healthcare or legal expenses out of their own pocket in the event of an accident. Commercial vehicle insurance solves these problems by covering such expenses without hassle.

Protection for physical damage and collision protection

In the event of a vehicular accident, business owners and their employees will need to pay for the repairs of their own vehicles and also the third-party vehicles involved in the accident. Commercial vehicle insurance safeguards businesses by partially or totally covering these expenses. In this way, the business does not get financially hit by a contingency that is not even related to its core operations.

Protection for employee drivers

A commercial vehicle insurance policy backs employee drivers by covering healthcare bills and other costs. This way, they can receive treatment for accidents from good healthcare providers and recover quickly.