A standard or basic commercial auto insurance policy consists of four mandatory coverages. They are:
Third-party liability coverage covers you if you injure another driver or damage their property with your vehicle. The minimum mandatory coverage limit is $200,000 for any one accident, but choosing a higher coverage amount is recommended.
- Direct Compensation-Property Damage
Protection for damages to and loss of use of your vehicle and its contents if another motorist is at fault for an accident or collision that you collect directly from your insurance provider.
Accident benefits cover you and your passengers’ medical and rehabilitation bills if injured in an accident. It also includes funeral expenses, loss of income benefits, and death benefits if you or your driver are killed in an accident.
If you’re injured and your vehicle is damaged by an uninsured motorist or because of a hit-and-run accident, this coverage pays for damages to your vehicle and covers the cost of your physical injuries.
Collision coverage pays for damages to your vehicle when you are at fault for an accident with another vehicle or if you hit a stationary object.
Covers the cost of a broad range of damage and loss to your vehicle, including theft, vandalism, fire, hail and severe weather, and flying or falling objects.
All perils insurance is a combination of collision and comprehensive coverages.
- Employers’ Hired and Non-Owned Auto Liability
Coverage for vehicles your business does not own but rents or leases or vehicles owned by your employees used for business purposes.
If your business regularly stores customer vehicles, you may require a garage liability insurance policy.