A vehicle that is used within the context of business must have its own policy; a personal car insurance policy is not enough, as it won’t cover items that relate to business. If your business uses vehicles to perform routine or even occasional operations, a commercial auto policy is a must.
Below are some of the coverages included in a commercial auto policy
Bodily injury liability coverage – pays for bodily injury or death resulting from an accident for which you are at fault and provides you with a legal defense.
Property damage liability coverage – provides you with protection if your car accidentally damages another persons property. It also provides you with a legal defense.
Combined single limit (CSL) – Liability policies typically offer separate limits that apply to bodily injury claims for property damage. A combined single limits policy has the same dollar amount of coverage per covered occurrence whether bodily injury or property damage, one person or several.
Medical payments, no-fault or Personal Injury Coverage – usually pays for the medical expenses of the driver and passengers in your car incurred as a result of a covered accident regardless of fault.
Uninsured motorist coverage – pays for your injuries and, in some circumstances, certain property damage caused by an uninsured or a hit-and-run driver. In some cases, underinsured motorist coverage is also included. This is for cases in which the at-fault driver has insufficient insurance.
Comprehensive physical damage coverage – pays for damage to or replacement of your car from theft, vandalism, flood, fire, and other covered perils.
Collision coverage – pays for damage to your car when it hits or is hit by another object.