Commercial auto insurance is similar to traditional auto insurance, but there are a few differences. First of all, the insurance is for a company and not a single person. Coverage is for business vehicles rather than private vehicles owned by individuals. Most states require it if a business uses automobiles that are used in day-to-day operations.
If a company owns it’s on vehicles, or rents or leases numerous vehicles used for the business, then coverage is mandatory. Coverage is also required if employees of a firm drive company cars for their work. They should also have coverage if employees use personal vehicles to complete work orders for a majority of their job. If a business owner drives the car for personal and professional use, then commercial insurance is required.
The coverage available with this kind of coverage is similar to comprehensive coverage that is available for an individual. The difference is that commercial coverage is for more than one vehicle. It can actually be purchased for a fleet of vehicles. It is important to have commercial auto insurance because it will protect your businesses from certain liabilities and dangers.
You will want to make sure any employee is covered if they get into an accident. Any accident that occurs during business hours is the company’s responsibility. An employee should not be using their own insurance if they’re driving a company car. So makes sure the company has the best insurance it can afford.
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