There are various types of business auto insurance policies that are put in place to cover various needs of the policyholder. Every business is different and depending on what you are doing it may or may not make sense to have specific commercial auto policies in force. We will touch on some of the more popular types of insurance that are used a lot in the auto insurance realm.
Liability- Liability insurance for a commercial auto policy is very similar to that of a personal auto insurance policy. The liability covers the property damage and bodily injury damages to the other driver or object that you hit and are responsible for. It is very common to see much higher limits on a commercial auto policy and in some cases may be required by the DMV or under certain contracts. It is common to see what is called combined single limits (CSL) of $1,000,000 or more. Like a personal auto policy commercial auto liability is required to register your vehicle and drive on private roadways.
Property Damage- This covers the damage to your vehicle in the event of a comprehensive or collision loss. Like a personal auto policy, you choose a deductible that you are responsible for paying and the insurance company will pay the remainder up to the full value of the vehicle. This coverage is required by the bank if you are financing your vehicle.
Truckers General Liability- A trucker for-hire may need to purchase a truckers general liability policy to cover bodily injury or property damage liability. An example where a claim can be paid on a truckers general liability policy could be damage caused to the premises where items are picked up or dropped off. Also it can offer coverage for erroneous delivery. Many contracts will require a policy for truckers general liability to be in force before you can haul for them.
Non-Owned Auto Coverage- A non-owned auto endorsement can be added to your current policy to cover your employee’s vehicles that they may occasionally use when used for business use. A claim could be paid on this coverage when your employee runs an errand in their own vehicle and has a loss.
Hired Auto Coverage- A hired auto endorsement can be added to your policy to cover any vehicle that you would lease, rent, or borrow but you don’t currently own.
Any Auto Coverage- An any auto endorsement can be added to your commercial auto policy so that all hired, borrowed, or any vehicles that were just recently purchased can be insured as well as the vehicles that are currently scheduled on the policy.
Cargo Coverage- Cargo coverage covers the items that are being hauled by the commercial trucker. This can included items currently owned by the insured or owned by others they are hired to haul for.
On Hook- Like cargo coverage, on hook coverage covers what is being hauled by a tow truck which in most cases is the vehicle being towed.
Garage Liability- Garage liability covers the damage done to the another car while a customer’s car is being driven. Coverage is included on autos owned by a car dealership or auto service garage. There is also premises coverage for the dealership or garage that is given on this policy type as well.
Garagekeepers Legal Liability Coverage- Garagekeepers liability coverage covers the physical damage coverage on a customer’s vehicle while it is in the care or custody of the auto service garage. This can cover damage while the car is being test driven or while the vehicle is being stored at their location.
These are just a few of the different coverage options for various types of business auto insurance related risks. Depending on what you are doing, you may be required to have these coverages. If you have any questions on these various types of policies or endorsements or want some input on whether these coverage types would be necessary for your business, please give us a call at 704-494-9495 to discuss them further. Our trained agents would love to answer any questions you may have.