In buying commercial auto insurance, some of the coverage a buyer needs is the same as for the owner of a personal auto policy. On the other hand, commercial vehicles, which are used to conduct business, need additional coverage depending on the type of vehicle and its use. Just like drivers of personal vehicles, drivers of commercial vehicles need liability insurance, which pays for property damage and the medical expenses of the injured in the other car if the policyholder is at fault.
Other coverages to get are personal injury protection or medical payments that pay the hospital and doctor bills of the injured in the policyholders car; and collision coverage, which pays for body damage to the car. Comprehensive coverage pays the policyholder if the car is stolen or damaged by an event other than an auto accident. And uninsured and underinsured motorists coverage protects policyholders who are involved in an accident with drivers who have no insurance or not enough to cover claims in an accident.
Any business that involves the operation of a commercial vehicle invites more state and federal regulations than the average citizen-driver encounters.
For instance, if autos are in the business name, the owner needs a commercial auto policy. And if an employee is in an accident during work hours while driving his personal vehicle and the other driver wins more damages than the drivers personal auto policy pays, the other driver may sue the business the employee works for. that might place the assets of the business at risk. Commercial auto policies might cover and protect the business against such losses.
Commercial vehicle policies are available for a wide variety of vehicles, even those only utilized seasonally or temporarily.