Time for a Commercial Vehicle Policy this Winter
  • Post last modified:December 9, 2019
  • Post category:Insurance

As a Connecticut business owner, you have endured some of the perilous dangers that winter in New England has to offer. From slippery road hazards to unexpected weather, the risks for drivers in the area increase exponentially in the wintertime, which is why you need to take extra precautions. 

What is Commercial Vehicle Insurance? 

Commercial vehicle insurance, also known as a business auto policy, protect you while driving vehicles you use in your day to day business operations. Just like your personal vehicle, the state requires you to maintain certain liability limits if you or one of your employees is the cause of an auto accident. On a personal auto policy, there is no coverage for vehicles used for commercial or business purposes, so you must maintain a commercial vehicle policy. 

What does commercial vehicle insurance cover?

Commercial Auto Insurance policies are very similar to personal auto policies in what they cover. Those coverages include:

  • Liability for bodily injury to others
  • Property damage liability
  • Optional bodily injury coverage for injuries that occur in a state outside your home state
  • Personal injury to you, your employed drivers or passengers with medical expenses and lost wages included
  • Collision coverage for costs resulting from an accident, despite who is at fault
  • Comprehensive coverage for damage other than collision
  • Medical payments coverage for hospital expenses, care, and funeral expenses
  • Underinsured and uninsured motorist coverage
  • Non-owned auto coverage for when you or your employees drive a rented or borrowed vehicle
  • Loading and unloading liability
  • Substitution transportation when your commercial vehicle is being fixed, and you use a loaner from the repair shop
  • Towing and labor costs
Truck plowing snow

Do I need a business auto policy?

If your business relies on the usage of vehicles to complete its day-to-day operations, it has employees who frequently use company cars to meet with clients or deliver your business’ products. Or operates a business that requires industrial vehicles to get the job done. Now is the time for you to protect the employees and property of your company with a commercial vehicle insurance policy. Those who drive for rideshare companies such as Uber or Lyft should also look into a business auto policy to bridge any gaps in coverage. 

What vehicles are covered? 

The Insurance Information Institute states that the scope of coverage in the business auto policy can be either broad or narrow, depending on your choice of options. It could, for example, be written to apply only to one specifically described auto. Or, as an example of very broad coverage, the policy could be written to apply to the named insured’s liability exposures arising out of the use of any auto.

In general, you have three options for which vehicles you choose to cover.

  • Autos your business owns
  • All vehicles your company owns, hires or leases
  • All autos used for the business, including those that your business does not own, hire or lease

Most companies will benefit most from the third type since that is the only coverage that protects the company from liability when an owner or employee is driving a personal vehicle on business.

The Takeaway

As we head into the winter months, it’s essential to review your business insurance to make sure that the coverages meet your current needs. To learn more about commercial vehicle coverage or for a review of your current policy, contact the professionals at Paradiso Insurance at 860-684-5270 or visit us here. Our friendly insurance experts will be happy to answer any questions you have.