How Commercial Auto Insurance Protects Your Business


Commercial auto insurance is indispensable if you operate a business that involves working at more than one job site or making deliveries to customers directly. Whether you need this policy to insure multiple vehicles and drivers or only each, you must get sufficient coverage. Consider the practical, substantive ways a commercial auto insurance policy can protect your business.

This Insurance Plan Safeguards Your Workforce

For the most part, personal auto insurance excludes claims involving the commercial use of a vehicle. In short, this means that accidents occurring when personnel uses their own vehicle during their employment will not fall under the scope of their personal policy. Your company might be liable to third parties alleging that a team member was responsible for damage to their vehicle or a personal injury. If you do have a commercial auto insurance plan, your company may bear the full financial brunt of an action for damages.

It is also worth noting that a claimant could pursue compensation from a business and an individual driver jointly and severally. Since personal policies are unlikely to offer benefits, employees would have zero coverage to deal with a lawsuit. Protecting your business with commercial auto insurance protects your workforce by sparing them from this scenario and equipping them with the resources they need to repair damage to a personally-owned car or truck.  

A Commercial Auto Insurance Plan Helps Secure Your Assets and Operations

If you have a company-owned vehicle or an entire fleet of vehicles, you need commercial auto insurance to safeguard the value of your investment. A policy can pay for damage from a collision. If you elect comprehensive coverage in your plan, it may pay for damage attributable to flood, theft, or vandalism.

Choosing the right commercial coverage is especially important if you purchase a vehicle with financing. Carrying a minimum threshold level of coverage may be a requirement per the terms of a contract with a financier.

With a policy in place to fund the repair or replacement of a vehicle, you can steer clear of significant losses. Moreover, you can preserve the value and utility of one of the essential assets you rely on in your day-to-day operations.  

Protecting Your Business With Commercial Auto Insurance Mitigates Liability Risks

When a business entity is liable for an accident, the total cost of a claim could be considerable. A commercial policy with benefits that exceed a state’s mandatory minimums, you can rest assured that one accident will not jeopardize your cash position.

Commercial Auto Insurance Facilitates Financial Growth

Targeted steps to ensure financial stability with insurance coverages speak to your responsible risk management practices. Taking proactive steps to mitigate risk can inspire confidence in potential lenders and investors who could help you achieve business growth. Carrying commercial auto insurance also strengthens your ability to collateralize vehicles to procure capital.

Maintaining continuous active coverage while taking steps to reduce the occurrence of claims against a policy can make your insurance affordable. Lastly, working with an insurer specializing in customizing auto coverage solutions for businesses can help you access competitive rates. 

About The Hilb Group

Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Founded in 2009, the Hilb Group has been helping clients to make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at (800) 776-3078 for a consultation.