Commercial car insurance is no longer just for major companies; small, locally owned businesses and even individuals sometimes need the insurance without realizing it. If you use a vehicle for a commercial use, whether it is delivering newspaper, courier services, or any other business use, you’re in need of commercial auto insurance.
This insurance covers essentially the same thing as personal auto insurance, except that it provides special coverage for commercial use of the vehicle. It protects employees who may use your vehicle, equipment stored or carried within the vehicle, as well as your assets in the event of a lawsuit. Coverage is available for a single vehicle or an entire fleet of vehicles, depending on what is needed. Commercial vehicle insurance protects not only against accidents, but also against damage to the vehicles due to floods, fires, vandalism, and more.
Note, however, that commercial auto insurance does not cover utility vehicles such as dump trucks or cement mixers. There is a separate type of policy necessary for that sort of vehicle when used in work-based environments.
The major benefit of this type of insurance is that your personal assets are protected in the event of a lawsuit against your company. In addition, should any accident happen, whether it involves another vehicle or not, your vehicle is covered. This insurance policy also protects any passengers within the vehicle; for instance, should the car be used to transport other people for commercial use and is involved in an accident, the policy will help cover their medical payments.