Commercial Auto Insurance

Commercial Auto Insurance Policies

Chicago Insurance Advisors

Commercial auto insurance is designed for business owners and individuals who have a Commercial Driver License and drive commercial vehicles or trailers. A commercial insurance policy is necessary when exclusions on a standard auto insurance plan make it so that private passenger insurance is not an option. This business line of insurance will provides liability, medical and physical damages coverage, similar to a personal plan. The major difference is that commercial auto insurance covers a wide varieties of usage that are not excluded.

Who Is It For?

Commercial insurance is designed to be very flexible. Business owners with fleets all the way to an independent contractor who has a CDL can apply for this type of coverage. You will need to begin by reviewing personal auto insurance policies to see if there are exclusions that apply to your business. If you have permanent business equipment installed in your car, the vehicle has more than 4 wheels, or your industry is risky, you will need a policy written for commercial risk.

How Does It Work?

Commercial insurance is very similar to personal lines insurance. Like your personal plan, you will have a declarations page that lists your coverage options and limits. You will have the option to choose higher limits, reject optional cover, and add drivers and cars to the plan. If you have a fleet, the same cover may apply to all vehicles and drivers listed. If you have a plan where each car has individual coverage limits, every covered vehicle will be listed. It is important to review the exclusions, limits, and policy terms each renewal.

Different Types of Coverage

Commercial policies include several types of coverage you may already be familiar with. Some of the coverage types you will need to choose limits for include:

* Bodily Injury: to pay for injury and death sustained by a third-party
* Property Damage: to pay for damages to property owned by a third-party 
* Medical Payments: to pay for medical expenses that the driver and passengers accrue 
* Uninsured Motorist: to pay for injuries when someone with no insurance is at-fault 
* Comprehensive: to pay to repair or replace the vehicle when damaged from fire, theft, vandalism, etc. 
* Collision: to pay to repair or replace the vehicle when damaged in a collision 

Adding commercial car insurance to your portfolio passes the burden of paying for settlements, repairs and medical bills on to an insurance company. For an affordable amount of money, you will receive hundreds of thousands of dollars in protection that can be claimed when needed.

 

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