Did you know that most small business owners are a bit confused when it comes to understanding the differences between commercial auto insurance and personal auto insurance? So what exactly is commercial auto insurance and what does it cover? In essence, commercial auto insurance is automobile insurance for vehicles that are used for business related reasons. On the other hand, personal auto insurance is automobile insurance for vehicles that are used for your personal life. That means your personal auto insurance policy covers you when driving to and from work.

However, if you utilize your vehicle for work related purposes, than your personal auto insurance policy does not cover you. For example, if you own a small construction business and you use a van or pick up trucks to carry your tools, supplies, and materials back and forth to various worksites, you need a commercial auto insurance policy. Commercial auto insurance is similar to personal auto insurance due to the fact that the policy includes various types of coverage’s. Commercial auto liability coverage protects your business and yourself if you or any of your employees cause bodily injury to another party when driving one of your company vehicles.

It also covers property damage when you or one of your employees causes property damage when driving one of your company vehicles. Your commercial auto policy also covers medial payments, also known as personal injury coverage, if the driver and or any passengers in one of your company owned vehicles are injured in an automobile accident. Personal injury coverage is paid no matter who is at fault of the accident. Your commercial auto insurance policy also includes collision coverage, which pays for any damages to your company owned vehicles, no matter who is at fault for the accident.

Comprehensive coverage is also included in your commercial auto insurance policy. In essence, it pays for any damages to your company owned vehicles based on theft, extreme weather, falling objects, vandalism, and most other non-auto accident related occurrences. Last but certainly not least, your commercial auto insurance policy also includes uninsured-underinsured motorist coverage, which covers damages that are the fault of an uninsured or underinsured driver. There are also a few other types of coverage that you can add on to your commercial auto policy.

For example, trailer interchange coverage covers any trailers that are attached to your company owned vehicles that are actually owned by another business entity. You can also add rental reimbursement with downtime, which covers any costs that are associated with renting a vehicle if your company vehicle is being repaired. Hired vehicle coverage covers your business if you need to rent an automobile for your employees or clients. Last but certainly not least, non-owned vehicle coverage provides you with insurance coverage when your employee uses his or her own vehicle when conducting business on your behalf.

If you own a business in the Commonwealth of Massachusetts you need to ensure that you have the proper commercial auto insurance policy in place. 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.