Commercial Auto Insurance Policies
Commercial auto insurance is used to protect the assets of businesses that need company vehicles for delivering products or for providing services. The vehicles, such as trucks or vans, must be protected in the event of an accident, which will ensure that the businesses can continue to operate. Inspectors may need trucks for hauling tools and equipment to construction sites. Florists may need vans for delivering flowers. The insurance will protect the company vehicles, the company drivers and also any other vehicles or drivers that may be involved in accidents.
Accidents can happen in rainstorms, snowstorms, rock slides or foggy weather conditions that will force the drivers into precarious situations. There may be medical costs for injuries and other costs for repairing or replacing vehicles. If a company driver was not responsible for an accident, the insurance can also provide coverage for accidents that are caused by uninsured motorists. Managers must protect the investments in their assets, such as with insurance coverage for theft or damages to company trucks, and must also provide adequate protection for company drivers.
Policies have different limits for coverage, which include the limits for medical costs and the limits for the costs of vehicle repairs. Managers must choose the limits for the insurance policy and also be prepared to use company funds to cover any additional costs from accidents. An insurance policy is necessary for protecting vehicles and will probably only be used for unavoidable circumstances. Company drivers who have bad driving records will increase the costs of the policies or could be denied coverage under the policies.
The benefits of an insurance policy include fewer risks that could restrict the normal operations of a business and protection for company drivers who could be injured by uninsured motorists. The policies may provide auto liability, collision coverage, comprehensive coverage, medical payments, coverage for rented or borrowed vehicles, coverage for employees who use personal trucks for the businesses and coverage for uninsured or underinsured motorists. Company managers use commercial auto insurance to control the costs from unavoidable problems that may jeopardize normal operations.
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