If you own a business vehicle, you may require special insurance known as Business Auto Insurance. This type of insurance offers a wide range of coverage options, and it’s important to understand the basics of what it provides and why it’s essential for your business vehicle.
What is Business Auto Insurance?
Business Auto Insurance (or motor vehicle insurance) is an insurance particularly designed for business vehicles, such as trucks, vans, and cars used by your company. It covers any damage, as well as any medical expenses resulting from an accident in which your company vehicle is involved. Because of the higher risk of claims and the extra workload required of repair and towing services, business auto insurance typically costs more than personal auto insurance.
What Does Business Auto Insurance Cover?
Business auto insurance typically includes the following coverage:
1. Property damage liability
2. Collision coverage
3. Comprehensive coverage
4. Medical payments coverage
5. Uninsured/underinsured motorist coverage
The amount and type of coverage can vary according to your state or company’s requirements. It’s important to consider your own needs carefully so that you can determine how much coverage you need.
Why is Business Auto Insurance Necessary?
Business Auto Insurance is necessary to protect your business from financial loss if involved in an accident. Even if you have basic liability coverage, it may not be enough to cover all the damage and medical expenses resulting from an accident with a business vehicle. This type of insurance provides added protection that can save you money in the long run.