Do You Need Commercial Auto Insurance?

Did you know that commercial auto insurance covers expenses and legal fees if one of your business owned vehicles becomes involved in an automobile accident. In fact, commercial auto insurance is required for all commercial vehicles in the Commonwealth of Massachusetts. So, who needs a commercial auto insurance policy? In essence, any organization that utilizes vehicles for business related purposes is required to have an appropriate policy in place at all times. Your policy should cover any automobiles that are owned by your business.

On the other hand, a non-owned auto insurance policy, or HNOA for short, is needed to cover any personal, leased and rented automobiles that are used by your organization. Furthermore, your personal vehicle insurance policy is in place to cover you while driving outside of work, including driving to and from work. It should be noted that you are  not covered if driving your personal vehicle when  picking up supplies, making deliveries, or taking part in any other work related activity.

However, a business automobile policy will cover your personal automobile if you’re at fault for an accident that happens during a work based errand. That being stated, any automobiles that you own based on work related purposes is covered under your commercial automobile policy. Commercial auto insurance is so important because it protects your business and also protects you. In essence, your company could be in a lot of legal trouble and face financial ruin if you don’t have an adequate commercial auto policy in place.

As you’re probably aware, all automobiles in the Commonwealth are strictly required to have an auto liability policy in place. You could very well be facing a lengthy lawsuit or expensive settlement if one of your company automobiles is found at fault in a nasty accident. The bottom line is that you may very well be forced to pay the damages caused to the other vehicle. You may also be responsible to pay for the other party’s pain and suffering, lost wages, medical costs, and other related expenses.

Those figures can and do add up rather quickly.  Just imagine having to pay tens of thousands of dollars or even hundreds of thousands of dollars or more out of pocket? What would that do to your business? The good news is that a commercial auto insurance policy is a fraction of the cost. Many small business owners don’t realize that driving without automobile insurance in MA may result in a fine up to $5,000, imprisonment of up to a year, or both. You will also face a 60 day suspension of your driver’s license.

If you own commercial vehicles in the Commonwealth of Massachusetts then you need to ensure that you have the proper insurance coverage in place. We can help you get the best deal on all of your personal and or business insurance needs.  Please consult with a professional insurance agent that can answer your questions about all insurance related topics. It is important to fully understand exactly what you are buying when it comes to insurance policies.

If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your insurance policies and explain your coverage options. We look forward to helping you with all of your personal and or business-related insurance needs now and in the future.

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