If you own a business and have a vehicle that you use for or within that business, then you must consider the purchase of a commercial auto insurance policy in order to protect your business from the financial losses associated with a damaged commercial vehicle.
Many business owners aren’t sure what they should consider a vehicle and what they should consider equipment when it comes time to get the proper insurance coverage. Here is a brief guide to give you an idea about how to differentiate.
Vehicles by Ownership Status
You can insure a commercial vehicle that you hold the title for, but you don’t need to own a vehicle in full before you add it to your commercial auto policy. You can insure leased vehicles, hired or rented vehicles and in some cases, even vehicles that you borrowed for the purpose of your business.
Types of Vehicles
There is almost no limit to the kinds of vehicles you can insure under your commercial vehicle policy. Here is a list of some of the most common vehicles insured:
- Private passenger vehicles. As long as the automobile is used for business purposes, a private passenger vehicle can be covered.
- Delivery vehicles. This might include vans, trucks, cars, motorcycles—even scooters.
- Trucks. If your business uses dump trucks, panel trucks, tow trucks, or any other type of industrial truck it can go on your policy.
- Trailers. Trailers are considered vehicles and can be covered on a commercial auto policy.
- Buses. Whether you use the bus for private charters or daily passenger transportation, you can protect it with your commercial vehicle policy.
- Some earth moving equipment. Not all earthmoving equipment qualifies for coverage under a commercial auto policy,
Vehicles not Covered
Certain marine vehicles and aircraft may not be covered under a commercial auto policy. Instead, you’ll need watercraft or aviation policies.
While you now know that you can cover a wide range of vehicles on your commercial auto insurance policy, you still need to think about what types of coverage to get. Because an auto insurance policy—whether it’s commercial or personal—can offer many different types of protections with different deductibles and limits for each. Some coverage types to consider include:
- Bodily injury liability
- Collision coverage
- Property damage liability
- Uninsured motorist coverage
If you still aren’t sure whether or not your company’s property qualifies as equipment or a vehicle, your local commercial auto insurance agent will be able to help you decide and pick the right coverages, limits and deductibles for you business.
ABC Insurance Services has a wide array of insurance companies/products to choose from to fill your Houston commercial insurance needs. Call us today at (713) 782-2886 to talk to your Houston insurance agent.