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Benefits of Business Insurance for Cars

Last Updated:
August 3, 2020
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When it comes to business insurance for cars and other vehicles, whether they're leased, rented, or owned, it's crucial for maintaining continuous operations. Whether transporting materials and tools to work sites, hauling goods for deliveries or driving to meet clients, businesses of all kinds rely on safe and functioning vehicles to serve customers and generate profit.

It is important to protect your drivers and vehicles through Commercial Automobile Insurance. That's why many organizations turn to business insurance for cars, which can provide the following benefits:

Third-Party Liability Coverage

Collisions don't just impact vehicles; they can cause expensive damage to nearby property and valuables. In these instances, commercial auto insurance can provide a range of protection if and when an employee damages another vehicle or property in an accident.

Additionally, in the event that a collision results in bodily harm and expensive medical costs for your employee and those involved in an accident, commercial auto insurance policies can cover medical costs, lost wages, and even legal expenses should a lawsuit be brought against your business.

Physical Damage and Collision Protection

Following an accident, you or your employees may need to pay for vehicle repairs, both for your company's vehicle and any vehicles damaged in the accident. This coverage can reimburse policyholders for the costs of vehicle repairs they may need following an accident, regardless who is at fault.

Many policies even provide coverage for uninsured and underinsured motorists, providing an extra layer of protection.

Comprehensive Coverage

Collisions aren't the only source of vehicle damage your business needs to consider. Comprehensive coverage protects from damages that are unrelated to an accident (ex. losses related to theft, floods, vandalism, and fires).

Protection Beyond Personal Auto Insurance Policies

Simply put, personal car insurance doesn't provide adequate coverage for any accidents that occur while policyholders are driving for business purposes. In the absence for commercial auto coverage, companies would have to pay out of pocket should employees get in an accident while making deliveries, picking up supplies, or using a vehicle to perform essential business functions.

Optional Add-Ons for Even More Security

Beyond standard protections for collisions, you can often customize coverage to meet your needs. Common policy add-ons (also known as endorsements) include roadside assistance coverage, new vehicle replacement cost coverage, towing reimbursement, rental reimbursement, and gap coverage for auto loans or leases.

Want to Learn More About Business Insurance for Cars?

This coverage isn't just for large fleets. Any car, truck, van, or similar vehicle used as part of your operations needs to be covered. To learn more about business insurance for cars and to secure a policy, contact your broker today.