Insurance World

Commercial Auto and Garage Insurance

    What is it? 

   While personal auto policies are used to insure automobile exposures for individuals and families, commercial auto policies insure automobile exposures for businesses. If you or your employees use vehicles to conduct business, commercial auto insurance can help protect your business in case of accidents or damage to your vehicles. Commercial garage insurance is a type of insurance that covers vehicles that are in repair, service shop, parking or auto dealership. There is a lot of different types of coverage depending on the ways and types of commercial auto and auto garage business operating. These types of insurance are mostly needed by Trucking Companies, Small Business Owners, Delivery Service Businesses, Contractors, Auto Repair Shops, Parking Businesses, Auto Dealerships.   

  What is commercial auto insurance?  

   Commercial auto insurance is a type of insurance policy designed to cover vehicles that are used for business purposes, such as transporting goods, equipment, or people. 

   Who needs commercial auto insurance?

   Businesses that own or use vehicles for business purposes, including delivery services, contractors, and trucking companies, typically need commercial auto insurance. 

   What does commercial auto insurance cover?

  Commercial auto insurance can cover a variety of things, including liability, collision, comprehensive, uninsured/underinsured motorist, medical payments, personal injury protection, and hired and non-owned auto coverage.

   What factors affect the cost of commercial auto insurance?

     Factors that can affect the cost of commercial auto insurance include the type of vehicle, how the vehicle is used, the number of vehicles, the driving history of the business and its employees, and the coverage options selected.

   Can I add additional coverage to my commercial auto insurance policy?

    Yes, many commercial auto insurance policies offer a range of additional coverage options, such as cargo coverage, roadside assistance, and rental reimbursement.

   How much coverage do I need for my commercial vehicles?

    The amount of coverage you need will depend on the type of vehicles you have, how they are used, and the risks they face. A knowledgeable insurance agent can help you determine the appropriate coverage levels for your business.

   What happens if I don't have commercial auto insurance?

     If you use your personal auto insurance policy to cover vehicles used for business purposes, you may not be fully covered in the event of an accident. This could leave your business vulnerable to costly damages and legal fees.

   How can I get a commercial auto insurance policy?

     We offer flexible policies with a range of coverage options, as well as affordable rates and convenient payment options to make managing your insurance easy and stress-free. Plus, our experienced team of insurance professionals is always available to answer your questions and provide guidance whenever you need it.

     Don’t leave your business at risk. Contact us today to learn more about our commercial auto insurance policies and get a free quote. Let us help you protect your business and keep your vehicles on the road with confidence.

     Here is the list of the commonly used types of commercial auto and garage insurance:

     Commercial or Business Auto Policies provide coverage for autos owned or operated by businesses that aren’t covered under the Personal Auto Policies. Types of autos covered include:

• Passenger-type autos and utility trailers designed to be towed by private passenger autos, plus panel trucks and vans.

• Commercial autos and trucks not described above (truck tractors, semitrailers, commercial trailers and service trailers).

• Private-type autos used as public conveyance or livery and those rented to others without a driver.

• Special type vehicles – self-propelled vehicles with permanently attached equipment (snow plows, street cleaning, road maintenance, etc.).

       Commercial auto insurance provides liability and physical damage protection for vehicles, such as cars, trucks and vans, that are used for business. Commercial vehicles require a separate policy because they’re typically exposed to more risk than personal vehicles. Commercial auto insurance isn’t just for industrial vehicles like semis or dump trucks. For example, businesses that use a car to run errands, carry tools, or transport clients might also need a commercial auto policy.

   What types of commercial auto insurance do businesses need?

   Liability coverage:

     This type of coverage protects your business if you or one of your employees is at fault in an accident that causes damage to another person’s property or injuries to another person. It can also help cover legal fees and settlements if you’re sued as a result of the accident.

   Collision coverage:

    This type of coverage helps pay for damages to your vehicle if it’s involved in a collision with another vehicle or an object, regardless of who’s at fault.

   Comprehensive coverage:

    This type of coverage helps pay for damages to your vehicle that are caused by events other than collisions, such as theft, vandalism, or weather-related damage.

   Cargo coverage:

    This type of coverage can help protect the cargo you’re carrying if it’s damaged or lost during transit.

   Hired and non-owned auto coverage:

     If you or your employees use personal vehicles for business purposes, this type of coverage can provide liability coverage in case of an accident.

   Medical payments coverage:

   This type of coverage helps pay for medical expenses for you and your passengers if you’re involved in an accident, regardless of who’s at fault.

   Trailer insurance:

   You can focus on enjoying your travels without worrying about the potential costs of repairing or replacing your trailer in case of an accident or theft.

   Trucking Insurance:

  There are various factors that impact insurance costs, such driving records, age of the driver, age of equipment, commodities hauled, radius, vehicle location, loss history, years in business and the list goes on. There are several types of trucking-related insurance coverages:

    Physical Damage insurance is coverage for your truck and trailer.

   Primary Auto Liability insurance is required by federal regulations. Every carrier must carry liability insurance on every rig even on leased units. Liability insurance protects you when a third party is injured in an accident.

   General Liability insurance protects the business for any property damage or bodily injury that might occur which does not involve a truck. Typical examples of this would include the slip and fall exposure at your place of business, advertising related exposures, and/or contractual exposures you may get involved in.

  Non-Trucking Liability insurance pays for an accident when the driver/truck is not under dispatch. The coverage is sometimes referred to as deadhead coverage or bobtail liability.

     Non-Owned Trailer Liability coverage protects the trailer you are pulling for someone else.

   Non-Owned Trailer Physical Damage coverage insures the trailer you are pulling for someone else in the event of loss. $20,000 is somewhat standard for trailers.

   Trailer-Interchange Liability coverage protects a trailer you are pulling when there is an interchange agreement in force. For example, with a steamship line.

   Cargo Insurance covers damage/loss to freight in transit. This coverage can have many exclusions such as unattended vehicle, maximum theft limitations on target commodities such as garments, liquor, electronics and a whole host of others. It is very important to read this policy closely in the event you think you may be covered for something and you are not.

   Terminal Coverage protects freight located at specified terminals in the event of loss. Usually there are time limitations related to this coverage. For example: 72 hours maximum per specified load. If the goods are stored longer than the terminal time you would most likely want to purchase Warehouse Legal coverage. Again, it is very important to read your policy. This amount of coverage is dependent on the total amount of goods stored/docked/off-loaded at any one time.

   Warehouse Legal coverage protects goods stored at specified locations in the event of loss. For example, as relates to theft, fire, sprinkler damage. This amount of coverage is dependent on the total amount of goods stored at the location at any one time.

   Bobtail Insurance / Non-Trucking Liability Insurance is similar to non-trucking liability and provides coverage when operating a truck without a trailer is commonly known as “bobtailing.” Bobtail insurance covers the tractor anytime it is not attached to a trailer regardless of whether or not the truck is under dispatch.

   Garage Insurance combines coverages specifically designed for those in the business of selling, servicing, repairing or parking automobiles. In addition to specific auto coverages, it includes general liability for risks associated with these businesses. Coverages include Liability, Physical Damage and “Garage Keepers Insurance”.

   Garage-Keepers Insurance fills the gap created by the Liability coverage exclusion stating that there is no coverage for damage to property in the insured’s care, custody or control and protects customers’ autos that the insured has in his care for servicing, repair, parking or storing. Garage-Keeper's insurance covers property damage to vehicles while in "care, custody or control" of the shop. For example, if there is a fire while a customer's car is stored overnight in the garage, the shop owner is covered under a Garage-Keeper's policy.

   Coverages are Comprehensive, Specified Causes, and Collision. Basic policies are for the insured’s legal liability. Expanded coverage available covers the customer’s property regardless of legal liability. This could be through direct Physical Damage coverage regardless of the customer’s insurance or paying only for any amount in excess of the customer’s coverage.

   If you need to purchase Commercial Auto or Garage Insurance, please submit your request