Whenever someone drives a company car, or operates any vehicle on behalf of a business, then they are representatives of that business. Therefore, if a problem occurs, the business might be the party that has to pay the necessary recovery costs. Commercial auto insurance enables the company to do so without the significant financial losses that might result from these exceptional hazards.

A commercial auto policy is necessary for a wide variety of vehicles, including but not limited to:

• Vehicles owned by a business
• Company-owned vehicles driven for personal business
• Employee-owned vehicles used for business purposes (aside from commuting)
• Personal vehicles whose weights, horsepower and other features classify them as commercial

A commercial auto policy looks a lot like the average car insurance plan. However, it contains specialized perks that will address a business’ liabilities associated with vehicle operations. 

The benefits included within most plans are:

• Liability Insurance: When an accident is deemed your fault, this coverage help you pay for the damage you do to others (like other drivers) who weren’t in the car with you.
o Bodily Injury Liability Coverage: This plan pays for third-party medical bills and sometimes for death benefits.
o Property Damage Liability Coverage:  This pays for damage to the other party’s property.
• Hired/Non-Owned Auto Liability Insurance: This liability coverage extends to vehicles not owned by the business but used by them for business purposes. These might include employees’ personal cars or vehicles that you rent or hire to use temporarily.
• Collision Insurance: This covers damage to your own vehicle that you sustained in a wreck.
• Comprehensive Insurance: This coverage pays for damage from non-accident mishaps, such as weather damage, fires, theft, vandalism or similar accidents.
• Medical Payments Coverage/Personal Injury Protection: If you get hurt in an accident, this coverage can pay for your medical bills. Sometimes, it will cover other losses, such as lost income.
• Uninsured/underinsured Insurance: This insures you against damage caused by someone else who doesn’t have appropriate liability coverage. If you are the victim of a hit-and-run, for example, then this coverage can pay for your car’s damage.
Additionally, other policies and endorsements might help you expand your benefits, such as:
• Inland marine insurance
• Roadside assistance & rental car reimbursement
• Custom parts coverage
• Replacement cost vehicle coverage
• Gap insurance

To start your commercial auto coverage off right, you must carry all coverage required of you by law in New York State. At minimum, these coverage limits are:

• $25,000 Bodily Injury Liability Coverage per person
• $50,000 Bodily Injury Liability Coverage per accident
• $10,000 Property Damage Liability Coverage

Further coverage requirements might exist depending on the type of vehicle and its intended use. 
You are encouraged to increase your coverage to your advantage in all circumstances. Speak to your agent to learn how to get increased benefits without facing a significant additional cost burden.

Multiple factors can influence the cost of your commercial auto policy, including vehicle values, the locations of the business and your chosen coverage limits. However, with the help of our agency team, you’ll be able to determine exactly which combination of benefits offer you both savings opportunities while preserving your exceptional coverage.