Commercial Auto / Trucking Insurance

Whether it is long haul trucking or local delivery; whether you have single commercial vehicle or an entire fleet, we can help you set up a policy with optimum protection for liability, cargo, physical damage to your autos and more.

If you own a business, you know that a key part of your operations is getting your products or services to your customers. That is why you need commercial auto insurance - coverage that is designed to protect your business should one of your company vehicles be involved in an accident, theft, or injury. Whether it is one truck, or a fleet; whether you are a travelling sales-person, or own a construction company, speak with a broker to discuss your commercial auto plan requirements. Here are some other points to keep in mind when shopping around for commercial auto insurance.

When do I need commercial auto insurance?

If your vehicle is used for commercial purposes, then you would need commercial insurance. Here are some typical examples where it commercial auto insurance is applicable:

  • You are a contractor. You use your vehicle to carry tools, supplies, materials to job sites
  • You are a local delivery or long-haul driver
  • You use your vehicle to visit clients
  • You have employees that need access to the vehicle(s)

Even if the vehicle is occasionally used for business purposes, you need to ensure you have the proper coverage. Keep in mind that while your personal auto insurance also provides protection against the same threats, it may not cover you if the vehicle is used for commercial purposes.

What is covered under a commercial auto policy?

There are 3 main components to the commercial auto policy, much like a personal auto policy:

  • Business use: If you use your vehicle for both personal and commercial purposes, this kind of usage can be provisioned directly as part of your personal auto insurance policy. For example, if you are a realtor using your personal vehicle for showings, or if you are a home-based business buying supplies for your business, you can add business use to your personal policy
  • Commercial use only: If you are a contractor who uses a vehicle, Trailor, truck exclusively for carrying materials, or if you are a transportation company that has vehicles exclusively used for transporting equipment and materials, you should consider a commercial auto policy. These policies cover damage to your vehicles while provisioning coverage for your cargo.

What kinds of commercial auto policies are there?

The kind of policy you opt for depends on the usage of your vehicle. There are different ratings, and subsequent coverages, based on the kind of business usage you have:

  • Physical Damage: This would protect your vehicle against damage from various defined perils in insurance, whether it be an accident, vandalism, theft, or a hailstorm. Make sure to discuss your needs with your broker so they can help set up a policy that adequately covers your risk exposures.
  • Liability: This coverage would kick in to cover financial exposures resulting from injury damage or damage to others’ property if you are involved in an at-fault accident.
  • Accident Benefits: This coverage provides financial assistance if you have been injured in an accident.
  • A commercial auto policy also has various optional coverages that provide additional layers of protection. Make sure to discuss such options with a broker:
  • Cargo Coverage: If you are in the business of carrying or transporting goods, this coverage would step in to provide reimbursement for goods that are damaged in the event of an accident.
  • Medical Payments Coverage: takes care of medical or funeral expenses for accident-related injuries that are sustained by the occupants of the vehicle.
  • Uninsured or Underinsured Motorist: this coverage pays for damage sustained by occupants of your business vehicle if the accident is caused by an uninsured or underinsured driver.

What impacts the premium?

All insurance policies determine the premium based on a set of rating factors. For commercial auto insurance, the vehicle details and driver details are prominent rating factors. Along with this, the size of the business, the number of employees insured, business and driving risks (eg. kilometers driven, time of operations, type of materials transported or carried), and the amount of coverage are among the various factors that can impact the premium.

Don’t let the technical terms and various definitions overwhelm you. At Insurepedia, our team of seasoned experts have experience helping long-haul truckers, local carriers, contractors, restaurants, and more. We work with the leading insurance carriers to provide you comprehensive coverage policies catered to your unique risk. Feel free to contact us to discuss your needs.

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