Did you know that a commercial auto policy is a kind of automobile insurance that is issued for vehicles that are used for business related reasons? It is not intended to cover vehicles that are driven for personal use. In addition, a commercial auto policy includes many of the same features as standard automobile insurance. In essence, the liability coverage of the policy protects the business owner from financial based damages that may occur when a company owned vehicle is involved in a car accident.

It also includes protection for your commercial vehicles in the form of collision coverage and comprehensive coverage that pays to repair any damages, or even replace the entire vehicle when the vehicles are in a car accident.  However, a commercial auto policy also includes some important items that are only needed by people that utilize their automobiles for work. For example, non-owned vehicle coverage is needed when you have employees driving the vehicles for work related activities.

If you only use your automobile to drive to and from work, and your employees only use their own cars to drive to and from work, you don’t need a commercial auto policy. However, if you have company owned vehicles that are used for work, you do need to have a commercial auto policy in place. For example, if you own a construction company and have employees driving your company pickup trucks to pick up and drop off materials at job sites, you need a commercial auto policy. If you are self employed but do not have any employees you may need a commercial auto policy.

Once again, if you are only using your automobile to drive back and forth from your office, you really don’t need a commercial auto policy. On the other hand, if you own a small landscaping business and are in an auto accident while driving your landscaping truck to a job, and that truck is full of landscaping equipment, your personal auto insurance policy may not cover your damages. This holds especially true if you are trying to make an insurance claim on the damaged equipment. This is a case where a one-person show should have a solid commercial auto insurance policy in place.

Typically speaking, commercial auto policies have higher liability coverage limits when compared to personal policies. They are also fully tax-deductible, unlike personal auto policies that are only partially tax-deductible. In addition, a commercial auto policy can provide blanket coverage for all of your employees, or offer coverage for named employees only. Last but certainly not least; your commercial auto policy may also include equipment coverage for items such as trailers.

If you own or operate a commercial vehicle or fleet of vehicles in the Commonwealth of Massachusetts you need to ensure that you have the proper insurance policy in place. Please consult with a professional insurance agent that specializes in providing commercial automobile related insurance policies. 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.