In the fast-paced world of business, transportation plays a crucial role in keeping operations running smoothly. Whether you own a fleet of delivery vans, operate a food truck, or have employees commuting in company vehicles, the road is a place where risks can quickly escalate. That's why commercial auto insurance is an indispensable shield for businesses on wheels. 
Additionally, to comply with California laws, businesses in the state must maintain minimum levels of commercial auto liability insurance. Depending on your vehicle type, your company may also be subject to regulations imposed by the Federal Motor Carrier Safety Administration (FMCSA).
Coverage Provided by Commercial Auto Insurance
Commercial auto liability insurance offers financial protection against third-party injury and property damage claims, up to the limits specified in the policy. Considering your specific risks and exposures, your agent may recommend purchasing coverage beyond the minimum required liability amount.
Additionally, depending on your optional coverages, commercial auto insurance can help safeguard your company's vehicles and provide coverage for accident-related injuries to your company driver and their passengers. Generally, your business will have the flexibility to choose your deductible, which represents the amount you pay for certain types of coverage before your insurance coverage becomes effective. Furthermore, you can set dollar limits on specific policies such as liability, uninsured/underinsured motorist and rental reimbursement. Your agent will guide you in understanding how different coverage options can protect your company from the adverse financial impacts of accidents and incidents causing damage or injury.
Does Personal Auto Insurance Cover Business Use?
While personal auto insurance may provide coverage for commuting to and from work, it may not extend to accidents and incidents that occur while driving for business purposes. Therefore, if your company utilizes vehicles for business operations, you are required to have at least the minimum amount of liability coverage, even if you or your employees own the vehicles. Hired and non-owned auto insurance (HNOA) coverage is designed to protect against accidents and incidents involving leased, personal, or rented vehicles used for work purposes.
Contact Us to Get Commercial Auto Insurance Today
The knowledgeable agents at Stewart Kriese Ins Agency, Inc. in Oakdale, CA, are prepared to assist you in obtaining commercial auto insurance tailored to meet your company's specific needs. Reach out to us today to explore your options and receive a personalized 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.