Understanding Commercial Auto Insurance
What is Commercial Auto Insurance?
Commercial auto insurance, also known as business auto insurance, is designed for commercial vehicles used on the road. If you utilize a vehicle for work, you need a commercial auto insurance policy rather than a personal auto policy. Typically, a commercial auto policy includes $1,000,000 combined single limit of liability insurance coverage, with optional full coverage, comprehensive, and collision for each company-owned vehicle.
Types of Coverage
A Hired and Non-Owned auto policy is another form of commercial auto insurance that offers $1,000,000 combined single limit of liability insurance coverage for employees driving their personal vehicles for work purposes. However, this policy is not suitable for companies distributing cannabis. Companies with specific routes or drivers regularly on the road for routine duties need a commercial auto policy. Hired and non-owned auto policies are available for cannabis delivery companies, such as retail locations with delivery services.
Commercial auto insurance covers both comprehensive and collision, protecting your work vehicles from damages regardless of fault. It can also cover injuries and damages to third parties if you are involved in an accident with an uninsured motorist.
Coverage Details
Commercial auto insurance policies can include the following coverages for cannabis businesses:
- Auto liability
- Physical damage coverage
- Medical payments
- Uninsured and underinsured motorist coverage
- Rental reimbursement
- Roadside assistance
- Collision coverage
Consider Higher Limits
If your business is sued due to an automobile-related incident, costs for medical expenses, punitive damages, and attorney fees can quickly escalate. Investing in commercial auto insurance can help mitigate these costs. Consider increasing your limits beyond the standard $1,000,000 combined single liability limit by purchasing an excess liability policy. These policies start at $1,000,000 in liability and can be adjusted to meet your business needs.
Understanding the Difference: Personal vs. Commercial Auto Insurance
Many business owners mistakenly believe their personal auto insurance provides adequate coverage for work-related trips. Personal auto insurance may cover damages to your vehicle and medical expenses, but it does not provide coverage for work-related incidents unless you have purchased hired and non-owned auto insurance. Without a hired and non-owned auto insurance policy or a commercial auto insurance policy covering the specific vehicle, the business will be responsible for the entire lawsuit. A commercial auto policy bridges this coverage gap.
Commercial auto insurance, along with other policies such as liability, property, and workers compensation insurance, is tailored to protect your business comprehensively, not just the vehicle. Higher limits are also available to enhance your protection.
Get a Commercial Auto Insurance Quote
To learn more about commercial auto and hired and non-owned auto insurance, contact Bozzuto Group today.
Get A Quote
Protect your business and its leaders by contacting Bozzuto Group. We can assist you in finding the right insurance policy tailored to your business needs.
