Commercial auto insurance is a type of car insurance that provides liability and physical damages coverage for business vehicles. You need commercial auto insurance to provide coverage for the vehicles you use to transport goods, equipment or employees from one point to another in the course of your business. The company itself pays the monthly premiums for the coverage of its business vehicles. Whether it’s a small business or a large fleet of business vehicles, you’ll need insurance to protect yourself and your business from financial losses in the event of an accident.

But What Exactly Does Commercial Car Insurance Entail?
Well, there are certain incidents that your personal auto insurance coverage excludes. For instance, if you file a claim and the insurer finds out that you were using the vehicle for business purposes, the claim will be denied. Having business car insurance ensures that all your vans, trucks and cars you use to conduct business are properly covered.

Who Needs Commercial Car Insurance?
All businesses, big or small, need coverage for their commercial vehicles.

You need this type of coverage if:
• You or your workers use company vehicles for business and personal errands.
• You let your employees use their own vehicles while conducting company business.
• Your employees use company-owned, rented or leased cars.
• If your company owns, rents or leases any cars.

The most popular type of business vehicle insurance is the commercial car insurance liability coverage. Commercial car insurance liability protects a business from financial losses if one of your business vehicles, driven by you or one of your workers, is involved in an at-fault accident. In most cases, this type of coverage will pay for bodily injuries, third party property, and medical expenses. Other policy types include collision coverage and comprehensive physical damage coverage. The right combination of the three policies will provide sufficient coverage for your fleet of business cars.