Vehicles owned by a business and used for work purposes—as opposed to personal vehicles—are typically insured under a commercial auto insurance
policy. This insurance protects your company from claims if someone
alleges that an employee driving a company vehicle is at fault in an
accident. It can cover things like legal fees and the medical costs of
others.
Business owners will sometimes ask, “Does commercial auto insurance
cover personal use of vehicles?” The answer is, yes, it can cover the
cost of damages even if the vehicle is used for personal activities
outside of its primary business use.
Commercial Vehicle Insurance vs. Hired and Non-Owned Auto Liability
It’s important to note that commercial vehicle insurance does not
cover employees who use their own vehicles for work purposes. For
example, if your workers make deliveries or run business errands in
their personal vehicles, those activities are not covered by your
commercial auto policy.
What you need for that type of scenario is what’s called hired and
non-owned auto liability. It’s add-on insurance that can be part of a general liability insurance policy or a business owners policy (BOP). This add-on also can cover the use of other vehicles that you don’t own, like a leased car or rented truck.
If you have questions about this distinction, you can contact us about our commercial vehicle insurance. We’re happy to talk with you about your needs and the policies that can address them.
Who Needs Commercial Auto Insurance?
If your business owns vehicles, you should have commercial auto
insurance to protect them. We provide policies for many types of
businesses, including:
Accountants
Architects and engineers
Bakeries
Business management consultants
Cleaning and janitorial companies
Contractors
Corporate trainers
Dog walkers and pet sitters
Electricians
Food service companies
Home inspectors
IT consultants
Landlords
Landscape companies
Personal trainers
Photographers and videographers
Restaurants
Retail businesses
Transportation companies
Trucking companies for hire
Wholesalers
Who has the Best Commercial Auto Insurance?
In determining who has the best commercial auto insurance,
there are a few things to consider. One is that you want to keep your
insurance costs as low as possible while still ensuring you have proper
coverage. At biBERK, we don’t use middlemen or brokers. Consequently,
we’re able to provide insurance directly to you for up to 20% less than
other companies.
The organization behind your commercial auto insurance is important,
too. biBERK is part of Warren Buffett’s Berkshire Hathaway Insurance
Group with millions of satisfied customers, more than 75 years of
insurance experience, and $38 billion in paid claims in 2020. So, we’re a
company with expertise and financial resources, and one you can trust
to have your back if an incident occurs.
Commercial Auto Insurance FAQs
Our licensed insurance experts are always happy to talk with you. But
you may be able to find answers to your commercial auto insurance
questions below.
How much does commercial auto insurance cost on average?
The cost of commercial auto insurance varies based on
things like the type of vehicle, how it’s used, and the driving records
of the people who will operate it, to name just a few. For example,
commuter/consultant use of smaller vehicles can cost $600 to $1,500 per
vehicle per year. The cost to insure vehicles for for-hire trucking can
be $5,000 to $25,000 or more per vehicle per year. Livery vehicles may
cost $2,000 to $6,000 per vehicle per year to insure.
For damage caused in at-fault accidents, which drivers are covered by my commercial auto insurance?
Owners or employees that drive your vehicles on a regular
basis should be noted on your policy. If a vehicle is scheduled on the
policy, the damage from an accident would be covered as long as the
driver was permitted to use the vehicle.
Will my insurance cost increase if I’m involved in an accident in my covered vehicle?
Your current policy won’t be affected, but your next term
or renewal may be. Your policy is updated each time it expires. When
that occurs, your company’s driving record is a factor in determining
your rate. That means your rate may go up, but an increase is not
guaranteed just because of an accident.
Does my commercial vehicle insurance cover items stolen from my vehicle?
Your policy can cover the vehicle and anything permanently
attached to it, like a truck bed tool box. However, in that example, the
tools themselves are not covered. Contractors who transport tools can
purchase coverage for them under a general liability policy or business
owners policy (BOP). Businesses in the for-hire trucking industry can
purchase cargo liability add-on coverage to insure the goods they haul.
If
I’m pulling a trailer with a vehicle that’s covered under my commercial
auto insurance policy, is the trailer automatically covered?
Not necessarily. Liability coverage is automatic for
trailers under 2,000 pounds gross vehicle weight, but for theft or
damage coverage, you have to add the trailer to your policy. Trailers
2,000 pounds or over must be added to your policy to have coverage.
About biBERK Business Insurance
biBERK can help you with all your small business insurance needs, including: commercial auto, general liability, property and liability, umbrella, and workers’ compensation. https://www.biberk.com
Media Contact:
Rakesh Gupta | 402-408-2870
Via KISS PR Distribution – KISS PR Media Contact [email protected]
Source: Story.KISSPR.com
Release ID: 196279
There is no offer to sell, no solicitation of an offer to buy, and no recommendation of any security or any other product or service in this article. Moreover, nothing contained in this PR should be construed as a recommendation to buy, sell, or hold any investment or security, or to engage in any investment strategy or transaction. It is your responsibility to determine whether any investment, investment strategy, security, or related transaction is appropriate for you based on your investment objectives, financial circumstances, and risk tolerance. Consult your business advisor, attorney, or tax advisor regarding your specific business, legal, or tax situation.
