Business Auto Insurance

Business automobile insurance protects your business against losses from physical damage or destruction of cars, trucks, vans, and other vehicles you use in the conduct of business. This insurance may cover vehicles owned by your company as well as those owned by employees.

Commercial auto liability insurance covers bodily injury and property damage to others while operating a company owned vehicle. It is sometimes referred to as commercial auto coverage.

Physical damage insurance covers the cost of repairing or replacing a damaged vehicle, whether it's wrecked in an accident or stolen and not recovered. Physical damage coverage may be optional in some states.

Through your business automobile policy, you can purchase physical damage protection on vehicles and liability coverages that protect you were someone is injured in an accident involving one of your company's cars. Liability coverages may also protect you if the property of others is damaged while in your car. Your insurance company will pay for repair or replacement of your damaged vehicle, as well as for medical expenses and lost wages that you're legally liable to pay because someone was injured in a car belonging to your business.

You will pay much less in premiums if you have the higher limits of coverage available with business automobile coverage available for your business vehicles. You can also build a cash value on the vehicle when you buy physical damage insurance for it through a business auto policy. This allows you to make a down payment or pay off the loan with part of the proceeds if replacement is necessary. And it's easy because the voluntary deductible applies only to vehicles listed in your policy.

Premises-operating policy: Why is a premises-operating policy better than an auto policy. Yes, if the vehicle doesn't belong to your business, but instead to an employee or non-owned auto coverage can be provided in some states subject to certain restrictions.

Business auto insurance provides coverage for vehicles you use in your business. It's not limited to personally owned vehicles, but the vehicle must be used in a business or commercial activity. If there's no connection to your company, personal policies apply. For example, if you borrow or rent a car for business use, you may be covered by both personal and business automobile policies.

Non-owned auto coverage pays losses on vehicles you don't own that are owned by others who are covered under your policy. A typical example is a teen driver home on spring break driving his or her friend's car, which is also covered under your policy. If the teen driver has an accident, it may be covered by both personal and business coverage.

You can add one or more people to your basic business auto policy. Each must have a "direct interest" in the insured vehicle. Possibilities include:

Owners or partners in a business, plus any employees who drive vehicles owned by the business. Directors and officers of corporations. Any individual with an insurable interest in your insured cars, trucks, or vans (such as a spouse living in the household).