Commercial Auto Insurance

If you're a business owner/operator, than you probably have a Business Owner's Policy. One of the biggest mistakes a company can make is assuming that a BOP will cover everything. There are many separate policies that every business should consider in addition to their BOP.

A prime example of this would be Commercial Auto Insurance. Sure, it seems logical that your average BOP would include coverage for the cars used by your company, but this is not the case. In order to get insurance for company vehicles, business owners must purchase a Commercial Auto Insurance policy. In order to purchase this type of coverage, a vehicle must:

• Be used for business purposes
• Be registered under a business' name
• Have a list of "qualified drivers"

Typically, coverage under a Commercial Auto policy has limits of $1,000,000. Policies must have liability coverage attached to them as well. For example, a policy with $1,000,000 worth of coverage generally has AT LEAST $100,000 of liability coverage. Commercial Auto coverage can also help protect businesses that have drivers who do not qualify as employees. If your business has non-employees operating its vehicles from time to time, you should add what is called Non-Owned/Non-Hired coverage to your Commercial Auto policy. This covers people who do not work for you, but may drive a company car. This also protects people who drive personal vehicles for business use.