Business Vehicle Insurance - Overview

Business Vehicle Insurance

If your business uses cars, vans, trucks, trailers or any other vehicles on public roads, then your business needs Business Vehicle insurance. According to the Insurance Information Institute, the necessary types of Business Vehicle coverage for your business will depend on “how you use vehicles in your business; who will be driving them; whether you own, rent or lease; and whether you and your employees are likely to be driving their own cars for your business.”

Every state requires vehicles to be covered by some level of liability insurance (or proof of financial responsibility) for bodily injuries and property damage. If one of your business’s vehicles causes bodily injuries or property damage, this insurance will help pay for the legal defense cost, settlement, and or damages awarded to the victim. The Insurance Information Institute recommends a minimum of $500,000 of liability protection for Business Vehicles.

A business should also insure against physical damage to the business’s own vehicles. Collision coverage will help pay for damage sustained by a business vehicle when it collides with another vehicle or overturns. Comprehensive coverage will generally cover damage caused by vandalism, falling objects, fire, hitting a wild animal, and some acts of nature.

There are other types of policies that may be necessary for your business’s vehicles, such as Medical Payments or Personal Injury Protection coverage. Give us a call to find out about the appropriate types and amounts of coverage for vehicles used in your business.