What Businesses Need Business Auto Insurance?

Most businesses that have vehicles which are driven for work-related purposes need business auto insurance. This may include (but isn’t limited to):

• Contractors who have company vehicles
• Taxi cab and limousine companies
• Snow plow companies and landscapers
• Trucking companies
• Auto garages that have tow trucks
• Restaurants that offer delivery services

Businesses like these normally must carry an auto policy that at least meets the state’s minimum requirements. In many cases, businesses choose to purchase much more coverage so they’re better protected.

What Coverages Does Business Auto Insurance Include?

The coverages included in business auto policies are frequently similar to those included in personal auto policies, although there may be some minor tweaks. Some of the coverages that might be included in a business auto policy are:

• Bodily Injury Liability Coverage, which may cover injuries people outside a company vehicle sustain in an accident
• Property Damage Liability Coverage, which may cover damage that others’ property sustains in an accident
• Combined Single Limit, which may combine the bodily injury liability and property damage liability into one joint limit (which is usually higher than either individual limit)
• Personal Injury Coverage, which may cover injuries sustained by drivers and passengers in company vehicles
• Comprehensive and Collision Coverage, which may cover damage sustained by company vehicles
• Uninsured and Underinsured Motorist Coverage, which may cover accidents caused by other drivers who aren’t adequately insured
• Loading and Unloading Liability Coverage, which may cover injuries sustained by non-employees during the loading or unloading of a vehicle

In addition to these coverages, there are many add-ons that insurers offer to enhance business auto policies’ protections. These add-ons vary from insurer to insurer. Some examples of ones that any given insurer might offer include:

• A Broader “Who is an Insured?” Provision, which may extend certain liability protections to any subsidiary companies your business owns
• Temporary Substitute and Leased Vehicles Coverage, which may cover other vehicles that are used while your business’ primary ones are being repaired
• Personal Effects Coverage, which may cover personal effects drivers keep in company vehicles
• Lease or Loan Gap Coverage, which may cover the difference between company vehicles’ fair-market values and the balances on the vehicles’ leases or loans
• Sound System Coverage, which may offer additional coverage for premiums sound systems (e.g. those in some limousines)
• Hired Automobile Coverage, which may extend property and liability coverage vehicles your business rents
• Non-Owned Automobile Liability Coverage, which may extend liability coverage to employees’ personal vehicles that they use for work-related purposes

How Much Do Business Auto Insurance Policies Cost?

As is true with personal auto policies, business auto insurance policies’ premiums vary a lot. In fact, they may vary even more than personal policies because companies use vehicles for so many different purposes.

Some of the factors that influence how much a particular business auto policy’s premiums cost include the:

• Types of vehicles a business has
• Ways vehicles are used by a business
• Number of vehicles a business has
• Miles driven each year for work
• Coverages chosen by the business

The only way to find out precisely how much an auto policy will cost a business is to request quotes for that business.

How Can Businesses Get Commercial Auto Insurance Quotes?

Businesses that would like to request quotes for commercial auto insurance policies should contact an independent insurance agent in the state. An independent agent will be able to help determine what coverages are most beneficial to a business, and they can get quotes from different insurers for policies that will provide those coverages.