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What is Commercial Auto Insurance and When Do You Need It?


Do you own or lease a vehicle that is operated for business purposes? If so, you need commercial auto insurance!

Commercial_AutoCommercial auto insurance covers you and your business in the event of property damage or bodily injury that occurs while either driving a company vehicle or when an employee uses their own vehicle for business purposes. If an employee uses a vehicle to perform job-related tasks, then that vehicle must be insured accordingly.

Like a personal auto policy, commercial auto policies cover vehicle repairs, medical expenses, and legal fees related to accidents involving the insured driver and vehicle. However, personal auto policies do not typically cover claims related to commercial use.

If your employees use their cars as part of their job, you need commercial auto coverage for them, as their personal policies won’t cover anything that happens while they’re on the job. And even if you’re a sole proprietor, you need a commercial auto policy for your car or truck if you use it in any way for your work. You can’t rely on your personal auto policy alone to cover that vehicle.

Commercial_Auto WorkerEven the safest drivers need proper coverage. At least 20% of commercial vehicles are involved in an accident each year. Just backing up accounts for approximately 30% of all commercial vehicle accidents, and even fender-benders in the company parking lot can result in big costs.

While commercial auto coverage can seem expensive, this is not a place to cut corners. Make sure all of your business’s vehicles and potential drivers are listed on your policy, with up-to-date information, and make sure you have the right coverage limits. Even a single accident can generate huge bills if the driver or vehicle involved is not properly insured.

We also recommend defensive driving training for all employees who might drive as part of their jobs. Our Verticlimb online training product offers defensive driving courses for noncommercial and commercial vehicles, along with extreme weather driving to prevent accidents during our frigid Chicago winters.

Our commercial lines experts at Kamm Insurance Group have extensive experience in finding commercial auto insurance for businesses of all sizes, from large corporations to sole proprietors. We take time to understand your business operations, vehicle use, and drivers to find the right coverage for your needs at the right price. We can also guide you through the claims process if an accident happens.

Contact us to start a commercial auto insurance quote and protect your business vehicles today!

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