Commercial auto insurance protects not only the vehicles that belong to a business, but it protects the financial welfare of the business, as well. It does not matter if the business possesses only one or two company vehicles, or if it has a large fleet of vehicles, commercial auto insurance is essential to protect these vehicles and the business, as well.
Vehicles that are used by businesses for work-related purposes are much like an extension of that business. What this means to the business owner or manager, is that if the person who is driving the business’s vehicle causes an accident, the other party in the accident can seek financial compensation from the business to cover any injuries or property damage.
An essential detail, that businesses need to consider when they purchase commercial auto insurance, is who will be driving their vehicles. Any employees who will be driving the business’s vehicles on a regular basis will need to be listed on the policy. If the owner of the business does not list all of the drivers of the business’s vehicles on the policy, he or she may have a difficult time filing a claim, and the insurance company may deny the claim.
In conclusion, commercial auto insurance not only protects the vehicles that belong to a business, but it protects the business from financial liability in the case that their employees or themselves get into accidents. If the business does not have proper insurance coverage, the injured party in an accident can sue the business, if the business was at fault.
This could put the business in a position where they may have to take drastic measures to pay court costs, fines and settlements. Some businesses have even had to file bankruptcy or sell their businesses to pay these high costs. However, any business can avoid these problems, by purchasing a commercial auto insurance policy to protect themselves.