Commercial auto insurance is a type of insurance that covers vehicles used for business purposes.
This includes cars, trucks, vans, and other vehicles that are owned or leased by a business and used for business activities such as delivering goods, transporting employees, or running errands.
While commercial auto insurance policies may vary, they generally cover damages to the vehicle and injuries to the driver and passengers caused by accidents.
They also typically provide liability coverage for damages or injuries that the business or its employees may cause to other people or their property while operating the vehicle.
However, commercial auto insurance does not cover everything. Here are a few examples of what is generally not covered by commercial auto insurance:
- Intentional damages or losses: If the business or its employees intentionally cause damage to the vehicle or someone else’s property, it will not be covered by commercial auto insurance.
- Wear and tear: Normal wear and tear on the vehicle, such as flat tires or worn brakes, is not covered by commercial auto insurance.
- Personal use: If the business vehicle is used for personal purposes, such as commuting to work or running errands, any damages or injuries sustained during this time may not be covered.
- Illegal activities: If the business or its employees are using the vehicle for illegal purposes, such as transporting drugs or participating in a crime, any damages or injuries sustained during this time will not be covered.
It’s important for businesses to carefully review their commercial auto insurance policy and understand what is and isn’t covered.
This will help ensure that the business is properly protected in the event of an accident or other loss.
