Understanding Coverage Options for Business Vehicles

Texas businesses that use vehicles for deliveries, client visits or equipment transport may need commercial auto insurance to manage these risks, control unexpected expenses and keep operations running smoothly.

What Is Covered by a Commercial Auto Policy?

Standard commercial auto insurance coverage options may include the following:

• Liability coverage may help pay for bodily injury or property damage you may cause to others in an accident and is typically required by law.
• Collision coverage may cover damage to your business vehicle if it’s involved in a collision, regardless of who is at fault.
• Comprehensive coverage may apply to noncollision events such as theft, vandalism, fire or weather-related damage.
• Uninsured/underinsured motorist coverage may step in if your business vehicle is hit by an at-fault driver with little or no insurance.
• Hired and non-owned auto coverage may extend coverage to when employees use personal vehicles for business purposes or when you rent cars for work.

What Are the Risks of Not Having Proper Coverage?

Driving a work truck or business vehicle without commercial auto insurance exposes your company to serious financial and legal consequences. Key risks include:

• Personal auto policies may deny claims for accidents that occur during business use.
• Your business could be held liable for injuries, property damage or lawsuits resulting from a crash.
• Out-of-pocket costs for repairs, medical bills and legal fees can strain, or even jeopardize, a small business.
• Most states, including Texas, require commercial auto coverage, and failing to carry it can result in fines, penalties or the loss of operating privileges.

We Can Help

Contact Auto Smart Insurance today to learn more and get a free quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.