By Celeste Stewart
Businesses have special needs when it comes to auto insurance ranging from the types and amounts of coverage to which vehicles and employees will receive coverage. Not only is carrying appropriate levels of business auto insurance smart, but financial responsibility laws mandate minimum levels of insurance.
Business auto insurance usually has higher liability limits than personal policies. Comprehensive and collision coverage are most popular, but bodily injury, uninsured/underinsured motorist, medical payments, extended benefits, death benefits and rental car reimbursements are offered under business auto insurance policies just like personal insurance policies.
Additional coverage types include:
Depending on how the insurance policy is written, the policy may cover employees other than those named on the policy. For example, if a non-named employee drives a company car and gets into an auto accident, an insurance policy that covers all employees and co-workers would provide coverage. On the other hand, if the policy covers named drivers only, then, unless the driver was named on the policy, coverage would likely be denied.
A company with a fleet of company cars and trucks would need a business insurance policy to cover the vehicles and protect the company financially, but individuals may also need business auto insurance policies. For instance, real estate agents regularly use their personal cars to take clients house hunting as do independent contractors who deliver newspapers. Business use of personal cars may require business auto insurance.
Businesses, self-employed businesspeople and independent contractors that use owned and non-owned vehicles for business purposes have special insurance needs that a business auto insurance policy addresses. Protecting a business's liability involves buying the appropriate type of insurance policy and understanding its provisions.