Every driver needs car insurance, but standard coverage often does not insure vehicles owned by or used by businesses in the course of their work. Because of the special liabilities present for business drivers, they need the tailored coverage provided by commercial auto insurance.

With a commercial auto policy in place, a business will have coverage against the losses of vehicle accidents, which can include liability lawsuits and costly damage. The policy, rather than the business itself, can pay for many of the recovery costs and reduce the risk of the business owner facing a significant monetary loss due to the mishap.

A commercial auto policy can insure various vehicles, including:

• Vehicles owned by a business and used for business purposes
• Business-owned vehicles used for personal travel
• Privately owned vehicles (such as employee-owned vehicles) used for business
• Vehicles rented or hired for business purposes

The policy that is best for you is the one that includes all the coverage necessary for your vehicles, employee drivers and liability risks.

Here’s more on some coverage options to include in your policy:

• Liability Insurance covers third-party property damage or injuries if an accident is your fault.
• Collision Insurance pays for damage to your commercial vehicle resulting from wrecks.
• Comprehensive Insurance applies to damage to your vehicle following hazards not related to collisions. It might cover vehicle fires, theft losses, storm damage or other coverage.
• Uninsured Motorist Coverage pays for your own vehicle damage if you become the victim of a hit-and-run accident or if an at-fault driver does not have liability insurance.
• Hired/Non-Owned auto coverage applies liability protection to vehicles the business does not own but still uses. For example, it applies if employees drive their own cars for business.
• Personal injury protection (PIP coverage) applies to the injury costs and other accident losses of commercial drivers and passengers.

If you carry cargo, equipment, or other materials in your vehicle, then you might need the added help provided by inland marine insurance. This coverage applies to physical property in transit.

At minimum, you must have the commercial auto coverage required of you by New York law. Depending on various factors, such as if you carry passengers or hazardous materials, or drive large commercial trucks, your coverage requirements might vary.

It is highly recommended that you carry more than the minimum coverage limits required of you because of the better protection that more expansive benefits can provide. The key is to periodically review your coverage to ensure that it offers enough financial aid for all the value you invest in your company’s driving activities.

Additionally, all policies will include deductibles and exclusions that will influence your final claim amount. However, you can work proactively with your agent to make these terms and conditions work to your satisfaction. Our agents can help you figure out the right way to design your coverage so that it adequately applies to all company vehicles and employee drivers at the right times.