Commercial auto insurance comes in a variety of forms, but companies who own a fleet of vehicles may want to consider a policy that insured all the vehicles at once rather than individually. Regardless of how many employees may be driving the vehicles, fleet insurance is more comprehensive coverage that addresses the potential liability of any employee operating a vehicle.
Vehicle Ownership and Ultimate Liability
An employee driving a company car who gets into an accident may create legal chaos in the event that physical or bodily damage occurs to third parties or properties. The company, as the owner of the vehicle, bears the responsibility for the accident and subsequent claims filed against the company. A commercial plan that provides owned auto coverage can bear the brunt of the financial strain.
Coverage Areas for Company Vehicles
When a fleet of vehicles is insured, typical coverage protections include:
- Liability coverage
- Medical payments coverage
- Comprehensive and collision (physical damage) coverage
- At-fault party damage coverage
The number of employees that may be listed as drivers for the vehicles, as well as the individual driving records, will factor into the cost of this coverage. The primary geographic locations of vehicle operations and the types of vehicles being insured also impact premium rates.
Vehicle insurance is a must-have for any commercial business. Specific coverage requirements depend on the number of vehicles owned and the use that the vehicles typically see.