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Business owners often make the mistake of believing company vehicles are covered under their personal policy. However, businesses that have designated cars or trucks for company use will need a separate auto insurance policy to be adequately protected. If you’re unsure whether your operations require this coverage, the professionals at P.D.H Insurance Brokerage in Valley Stream, NY, can help make that determination. Here, they cover crucial factors to know about commercial auto insurance. 

A Guide to Commercial Auto Insurance 

Who Needs It

auto insuranceAll companies that use vehicles to conduct business in any capacity must carry commercial auto insurance. It’s also necessary to purchase a policy if employees will be driving vehicles during the course of business, whether it’s a routine part of their job or they’re running errands on the company’s behalf. A business may also require coverage if vehicles are used to carry equipment, transport hazardous material, deliver goods, transport people, or tow other vehicles.   

What It Covers 

Just like a personal policy, commercial auto insurance has several types of coverage available, and business owners must choose a deductible and liability limits. Some of the most common options added to a commercial policy include liability for bodily injury and property damage; personal injury protection; collision, comprehensive, uninsured and under-insured motorist coverage; towing and labor; loading and unloading liability; and substitution transportation.

How Much It Costs  

How much a company pays for commercial auto insurance is based on several factors. Typically, insurers will consider the size of a business, the type and number of vehicles being insured, how high the risk is for filing a claim, and the amount of coverage needed. They are also likely to consider the driving records of everyone who will be using the vehicles. Fortunately, some providers offer a discount for insuring multiple vehicles, and commercial auto insurance is tax deductible.

Commercial and personal auto insurance policies have many similarities, but only one can protect your bottom line. P.D.H Insurance Brokerage will carefully assess your company’s needs and help you put together a comprehensive plan that will work best to mitigate your financial risk. Call (516) 561-5227 to request a quote on coverage, or visit them online for more information.

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