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Commercial Auto Insurance – What Does Commercial Auto Insurance Cover?

by njinsurors
Commercial Auto Insurance

Commercial auto insurance in New Jersey provides coverage for liability damages, collision, physical damage loss to business autos, medical expenses for injury to occupants of business autos, and damages by occupants of business autos as a result of negligence from motorists who are either uninsured or underinsured.

Physical damage coverage is provided by the commercial auto insurance policy for any vehicle that you own, lease, use for your business, or hire and Liability coverage is also provided for any bodily injury and property damage to others from your use of insured business vehicles.

Two types of physical damage coverage for insured vehicles include:

  • Collision Loss: Auto accident damage
  • Comprehensive Loss: Theft, weather, and other non-collision related causes

Two types of liability coverage include:

  • Property damage coverage: accidental damage to one’s property when you are at fault (such as someone’s car or house)
  • Bodily injury coverage: Accidental injuries to others when you are at fault.

Other Coverages that Commercial Auto Insurance Provides include:

Uninsured Motorist Coverage: Protects you against personal injuries and damages involving a company vehicle in which whoever caused the accident is unable to cover the cost.

Medical Payments Coverage: If employees and passengers are injured in a company-owned vehicle, regardless of who is at fault, medical expenses will be covered.

Towing and Labor Coverage: insures against equipment and material damages during loading, transport, and unloading.

Why is Commercial Auto Insurance a Necessity For Businesses?

Many of New Jersey’s businesses need commercial auto insurance for protection against accidents involving their work vehicles. Commercial vehicles often require specific coverages that a personal auto policy wouldn’t typically cover and these types of vehicles are more at risk than personal autos. Not having commercial auto insurance can put your business in legal and financial jeopardy. In the state of New Jersey, it is a requirement that all vehicles carry auto liability insurance. You could face an expensive settlement or a lawsuit if one of your work vehicles is responsible for an accident. You would have to pay for vehicle/property damages, lost wages, pain and suffering, and other related costs.

Commercial Auto Coverage for Businesses include:

Business Auto: Vehicles used for business activities by employees such as deliveries or visiting clients

Contractors: coverage for travelling between sites, tools and supplies

Food Trucks: Food Service businesses such as restaurants, ice cream vendors, and other food trucks depend on their commercial vehicles. The equipment attached to food trucks and vendors is often expensive and can be covered through a commercial auto policy.

For Hire Livery: A commercial auto policy must insure any vehicle used to transport people for a fee. These vehicles include Limousines, Taxis, and non-emergency medical transportation vehicles (NEMT)

Heavy Truck: Insures everything from dump trucks to tractor-trailers. Truck repair shops and speciality claims services are accessible to any of these vehicles.

Tow Truck: Protection is offered for rollbacks, wreckers, or roadside repair vehicles. Speciality tow coverages such as On-hook and Garagekeepers Legal Liability can be added to protect you when you are in possession of a customer’s vehicle.

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