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What are Commercial Auto Insurance Coverage?


There are many risks facing a business which every business would want to be protected from.  If you own vehicles used for your business, it is possible that this vehicle can cause an accident and this can put your business in jeopardy of a lawsuit.   This is why your need commercial auto insurance.  Here are some things to consider when looking for a commercial auto insurance.


Every vehicle the business owns should be under the business name, whatever its size, kind, or the purpose that it is being used for.  In the event of an accident, the title holder, which is the business, may be sued.  This will bring your business to court.  Your business name should be in the title of your insurance policy so that there is no question about the validity of your insurance coverage.


There are different liability limits offered by trucking insurance Phoenix company from the basic limits to the high insurance limits which amounts to millions of dollars.  If you insure your business at the basic liability limit, you can lose your business assets if your business vehicles causes an accident which results to the death or serious injuries to people.  If you take the high insurance limit, then you can protect your assets in the event of an auto accident that leads to death or injuries.


Each commercial vehicle has a correct classification and if you don't classify your vehicles properly then your insurance coverage can be voided.  The consequence of a void insurance policy is that in the event of an at fault accident of your vehicles, your company will have to shoulder everything that needs to be paid since your coverage is can no longer be used.  Even if you have similar vehicle, they may have different classifications according to their use, so you need to be careful in this.  Trucks used by electricians and trucks used as dump trucks, though the same trucks will have different classification.  these trucks belong to different categories and so they also have different premium amounts.


Every vehicle titled under a business needs commercial public auto insurance Phoenix coverage.  Some examples of these automobiles are limousine services, food services, delivery services, and many others.


The commercial auto mandatory coverage includes auto liability which can be basic or high auto liability which depends on the kind of business you have.  If your vehicle gets in an accident caused by an uninsured motorist and your employees riding the vehicle gets injured, then the insurance company pays the uninsured motorist coverage.  There are businesses that need to get other coverage.


Optional commercial coverage include physical damage coverage where the insurance company pays for your vehicle which was damaged by fire, flood, theft, or other risks.  Physical damage coverage also includes damages caused in a accident by non moving objects like walls, posts, and others.