COMMERCIAL AUTO INSURANCE

Why do you need commercial auto insurance?

In general, if an auto is used in tasks related to the operator's occupation, profession or business, other than commuting, a commercial policy is necessary.

• If you are using your auto to transport goods or people for a fee or if you use your auto to conduct a service, you may need a commercial auto insurance policy.
• A commercial auto policy may be appropriate if you need higher limits of liability because of the nature of your work.
• Hauling a considerable weight in tools or equipment or towing a trailer used to conduct your business may require a commercial auto insurance policy.
• A commercial insurance policy may be needed if employees operate the auto or if ownership is in the name of a corporation or partnership.

What does Commercial Auto Insurance cover?

Commercial auto insurance, like your personal auto policy, provides similar coverages such as liability, collision, comprehensive, medical payments (or personal injury protection) and uninsured motorists coverage. However, there are also differences between a commercial auto insurance policy and your personal auto policy that may include eligibility, definitions, coverages, exclusions and limits. Most commercial auto policies are "named driver only" policies, meaning only those drivers listed on the policy can operate a covered auto.

What are the coverages?

• 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 person's property.
• 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.