Commercial Auto Insurance
Commercial auto insurance is in principle similar to personal auto insurance. However, there are some distinct considerations to keep in mind when purchasing commercial auto insurance. By understanding these differences it will enable the insured to ask pertinent questions to better protect against their risks.
For many businesses today umbrellas have become a large part of their risk management and risk transfer. What many insureds do not understand is that umbrellas don’t automatically cover over the commercial auto policy. This largely depends on the carrier writing the umbrella. This of course is very important as having an umbrella in place is very advantageous for businesses who have the umbrella over top of their other coverage.
Although the minimum limits may vary state to state for commercial auto or personal auto it is essential to have an adequate minimum limit in regards to protecting the commercial business from potential risks. In many states nothing less than one million Combined Single Limit should be purchased. This however is best discussed with an insurance agent to find out what other similar businesses are insuring for.
One typical coverage often seen on personal auto insurance policies is “rental and towing” coverage. This however is not the case when it comes to commercial auto insurance. Although in some instances this can be bought for a commercial auto policy it is certainly by no means typical or standard. This is best discussed with the agent or insurance carrier who is writing the policy.
The above mentioned points are in no ways comprehensive but a good starting point when shopping for commercial auto insurance and discussing with an insurance agent or carrier. Of course it is always very important to read the insuring agreement or policy to clarify and understand the specifics.
Category: Auto Insurance
