Business owners sometimes overlook the need for commercial auto insurance. When vehicles are used for business, however, it’s important to maintain additional coverage that protects not only the vehicle and driver but also the employees and the business itself.
What Is Commercial Auto Insurance?
A commercial auto insurance policy is similar to a personal auto insurance policy. However, it usually includes expanded liability coverage. These higher limits are necessary to cover the higher potential losses when an incident involving a business vehicle occurs.
What Types of Businesses Need This Coverage?
Commercial auto insurance isn’t limited to heavy-duty vehicles. Any person who drives a car, truck, or SUV during the course of conducting business should be covered by this type of policy. Other types of vehicles that need a commercial auto policy include, but are not limited to, limousines and passenger vehicles, flatbeds, utility vans, delivery trucks, catering trucks, taxicabs, and work vehicles outfitted with equipment.
How Much Coverage Do Businesses Need?
The policy should pay for injury to employees, passengers, and other drivers, as well as the cost of replacing damaged vehicles, supplies, inventory, and equipment. Beyond liability, business owners can add special coverage for cargo, employees, and lawsuits against the company.
Most states, including Pennsylvania, have requirements for commercial auto insurance coverage. According to the PA Public Utility Commission, business vehicles with a seating capacity of up to 15 passengers must carry at least $15,000 in bodily injury liability per passenger, $30,000 in liability per incident, and $5,000 for property damage. Vehicles seating 16 to 28 passengers are required to carry at least $1 million in commercial liability insurance, and vehicles seating 29 or more passengers must be covered by a policy worth at least $5 million. Cargo vehicles must carry at least $300,000 in personal injury liability and $5,000 in property liability coverage.
Those who finance or rent commercial vehicles might have additional coverage requirements from the bank. This usually includes comprehensive and collision policies, which cover at-fault accidents, as well as damage caused by inclement weather and other unexpected events.
If your business requires the use of vehicles, contact Balliet Gilmartin Insurance to explore your coverage options. We’re an independent agency that has been serving Carbon County clients for more than 20 years. For excellent customer service and guidance from our knowledgeable, professional staff, call us today at 570-386-8001 to request a quote.