Texas Commercial Auto Insurance
Commercial Auto insurance is encouraged to cover cars, trucks, and vans used for operating a business. Large and small businesses should be properly covered by a commercial auto insurance policy. The purpose of this policy is to protect when a company owned vehicle is involved in a collision, stolen, vandalized, or otherwise damaged.
How Commercial Auto Insurance Protects a Business?
Commercial auto insurance covers damage to a company vehicle and bodily injuries when you or an employee produce an accident.
Commercial auto insurance offers five types of insurance protection:
- Auto liability covers legal costs if someone sues over harm caused by your vehicle.
- Medical payments for medical bills linked to accidents.
- Collision coverage pays to repair damage to your car from a collision with another vehicle.
- Comprehensive coverage pays for vehicle robbery and damage from other causes, such as vandalism.
- Uninsured motorist coverage protects you in the event a driver without insurance injures the driver or passengers in your vehicle. It can also cover damage to your vehicle from uninsured motorists.
Some types of coverage are optional, such as collision coverage. Other types of coverage are state required. Usually, business owned vehicles must be covered by commercial auto insurance.
Commercial auto insurance does not cover personal vehicles
Commercial auto insurance specifically covers business owned vehicles. It does not cover personal vehicles used for business intentions, unless that’s their primary use.
If your employees use their own vehicles for work errands, they may need hired and non-owned auto insurance.
This policy additionally does not cover:
- Items you carry in the car
- Using the vehicle to provide ridesharing through Uber or Lyft
- Employee injuries (normally covered through workers’ compensation insurance)
- Occurrences involving rented or leased vehicles
Who needs commercial auto insurance?
You need commercial auto insurance if your business owns vehicles and are used to:
- Travel to and from job locations
- Transport utensils and equipment used for business intended
- Transport staffs or customers