Whether your business has a single company car or a fleet of trucks, commercial auto insurance is an essential investment that protects your business from the financial fallout of accidents, liability claims, and other vehicle-related risks. Commercial auto insurance offers tailored protection that goes beyond personal auto insurance, ensuring you, your employees, and your vehicles are covered whenever you’re on the job. Here’s a closer look at what commercial auto insurance is, how it works, and the specific benefits it offers.

What Is Commercial Auto Insurance?

Commercial auto insurance is a type of insurance policy specifically designed for vehicles used for business purposes. Unlike personal auto insurance, it covers the unique risks that come with using vehicles for work—whether that’s transporting goods, visiting job sites, or providing services to clients. This type of insurance is essential for protecting your business assets and reputation when vehicles are involved in accidents or damages.

• Who Needs It? Commercial auto insurance is ideal for businesses of all sizes that rely on vehicles as part of their operations. This includes industries that use company-owned trucks, vans, delivery vehicles, or even personal cars used for business tasks. Without commercial auto insurance, any accidents or claims related to business use would likely not be covered under a personal auto policy, leaving your company exposed to financial risks.
• Why Personal Auto Insurance Isn’t Enough? Personal auto insurance typically won’t cover accidents if the vehicle was being used for business purposes, which means you’d be responsible for all expenses, legal or otherwise, out of pocket. Commercial auto insurance ensures that any claims are handled with your business in mind, giving you the protection and peace of mind to focus on your work.

How Does Commercial Auto Insurance Work?

A commercial auto insurance policy functions similarly to a personal auto insurance policy but is tailored to the needs of business vehicles and operations. It provides coverage when business vehicles are involved in accidents or other incidents, including when driven by employees on the job.

When an accident occurs, the insurance policy helps cover medical expenses, property damage, and repair costs up to the policy’s limits. Policies can include options for liability coverage, uninsured motorist protection, collision coverage, and comprehensive coverage, depending on the specific needs of your business. Additionally, because business vehicles often require higher liability limits, commercial policies typically offer increased coverage limits, reducing your company’s risk in case of a serious accident.

What Does Commercial Auto Insurance Cover?

Commercial auto insurance offers a broad range of coverage types designed to protect both your vehicles and the people involved in an accident. Here are the key areas of coverage that are typically included in a commercial auto policy.

• Bodily Injury Liability: Covers medical expenses, lost wages, and legal fees if your business vehicle causes injuries to others in an accident. This coverage is essential for shielding your business from potentially costly lawsuits and medical claims.
• Property Damage Liability: Pays for damages to another person’s property caused by you or your employees in a business vehicle. Whether it’s damage to another vehicle, building, or other property, property damage liability ensures that your business can cover the costs.
• Collision Coverage: Covers repair or replacement costs if your business vehicle is damaged in an accident, regardless of who was at fault. This is especially important for businesses with valuable vehicles, as it minimizes out-of-pocket expenses for repairs.
• Comprehensive Coverage: Protects your business vehicle from non-collision-related incidents, such as theft, vandalism, floods, fires, and natural disasters. Comprehensive coverage ensures your vehicles are protected against unexpected events that can disrupt your operations.
• Personal Injury Protection (PIP): Pays for medical expenses, lost wages, and other costs for you and your passengers, no matter who was at fault in the accident. This ensures that all involved can recover without facing financial hardship.
• Medical Payments (MedPay): Covers medical expenses for you and your passengers in the event of an accident, regardless of fault. This coverage is often available in smaller amounts and supplements PIP by covering additional medical costs.
• Uninsured/Underinsured Motorist Coverage: If your business vehicle is hit by a driver who doesn’t have adequate insurance, this coverage helps pay for your medical bills, repairs, and other expenses. This extra layer of protection helps protect against unpredictable costs.

Optional Add-Ons for Extra Protection

In addition to standard coverage, commercial auto insurance policies can include add-ons that provide added security and flexibility, such as:

• Gap Insurance: If you owe more on your vehicle loan or lease than the vehicle’s value at the time of a total loss, gap insurance covers the difference, protecting you from financial loss.
• Rental Reimbursement: Covers the cost of a rental vehicle while your business vehicle is being repaired for a covered loss, ensuring that your operations aren’t interrupted.
• Roadside Assistance: Provides assistance if your business vehicle experiences a breakdown, flat tire, or dead battery, covering towing and emergency services so you can get back on the road quickly.

Why Do You Need Commercial Auto Insurance?

Commercial auto insurance is essential for protecting your business from the financial risks that come with operating vehicles as part of your operations. Here’s why it’s a critical component of your business insurance portfolio.

• Coverage Beyond Personal Policies: Personal auto insurance won’t cover accidents that happen while driving for business. Without commercial auto insurance, you’d be responsible for all medical, repair, and legal costs associated with an accident, putting your business at risk.
• Protects Against Liability: With higher coverage limits than personal auto policies, commercial auto insurance helps protect your business from the significant costs of lawsuits and damages if an accident occurs. It covers your business in scenarios like property damage, bodily injury, and collisions.
• Safeguards Your Vehicles: Business vehicles are essential for productivity and customer service. Commercial auto insurance provides physical damage protection, so if your vehicle is damaged or stolen, you can get back to business quickly without bearing the full financial burden.
• Supports Employee Safety: If you have employees who drive company vehicles, commercial auto insurance ensures they’re protected on the job, providing coverage for injuries and damages. This supports employee well-being and can improve retention and morale.

Securing the Right Coverage with Schuetz Insurance

With so much at stake, investing in commercial auto insurance can make all the difference in protecting your business’s assets, reputation, and employees. Since 1943, Schuetz Insurance has supported Midwest businesses by providing comprehensive insurance solutions, including tailored commercial auto policies that meet the needs of companies large and small.

Whether you rely on a single work vehicle or a fleet, contact Schuetz Insurance today to learn how we can protect your business with the right commercial auto coverage. Let us put our experience and dedication to work for you, so you can focus on driving your business forward with confidence.