When selecting a commercial auto insurance policy, many factors play a role in the coverage you obtain. Policies can be written to provide a range of protections for you, including offering extensive protection for vehicles that you may not own outright as a part of the business. However, you need to be sure this type of business insurance provides ample protection for your company at all times; and that often means considering all the times when vehicles are used as a part of your company’s operations.
Is a Leased, Rented or Borrowed Vehicle Covered?
Commercial auto insurance covers the specific vehicles listed on the policy when those vehicles are used for business-related matters. The policy also covers vehicles not listed on the policy but operated by your employees for business-related matters. In many cases, this includes those vehicles that are leased, borrowed or rented.
This specifically comes into play in situations where employees use their own personal vehicles for business needs. The employee’s personal auto insurance is not going to cover the vehicle’s use for a business. It may provide protection if the vehicle is specifically borrowed as a temporary replacement of the individual’s vehicle while their own vehicle is not available. Additionally, if an employee leases, rents or borrows a vehicle for their personal use, your commercial auto insurance policy does not cover them. It only covers claims and incidents made when the vehicle is driven for business matters.
Making Sense of Commercial Auto Insurance
The biggest problems with commercial auto insurance is the limitations often in place for those small business-related uses. For example, your employee may use his or her car to drop off something at another office. In this case, the policy, if you have one, helps protect against accidents or claims that occur during that time.
As a business owner, it is essential that you sit down and talk to your agent about how you operate your business and whether or not there is any need for your employees to use their personal vehicles as a part of their job. If so, having a commercial auto insurance policy may be ideal since it can offer the level of financial protection you need in cases of accidents.
Get the right coverage. Call Insurance Agent2000 at (925) 827-0510 for more information on Clayton commercial auto insurance.