Commercial auto insurance helps protect your business from a potential financial disaster. However, there are some possible situations where you are not protected. Here’s a look at a few situations where you may be unable to rely on your insurance coverage.
Commercial auto insurance is a policy designed to cover your business vehicles if something happens to them. However, there are some scenarios when your coverage is excluded. Here’s a look at some such scenarios.
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Personal Vehicles
Remember that commercial auto insurance is not designed to cover your personal vehicles. The policy does not cover leased vehicles either. If one of your employees uses their personal vehicle on the job, they are not covered by your company’s commercial auto insurance policy. Their personal auto insurance does not protect your employee while they’re on the job either, which exposes your company to significant risks if an accident occurs.
You can inquire about adding accidental coverage to personal or leased vehicles. Research hired vehicles coverage, which is specifically designed to cover vehicles that are not covered by the business. This is the only way to fully protect your employee’s personal vehicle usage while they are on the job, as well as any leased vehicles. There are different variables to consider regarding the use of personal vehicles on the job.
Perhaps one of your employees uses a commercial vehicle to complete a personal task. Maybe you allow your employees to take a commercial vehicle home. If an accident occurs during one of these scenarios, it is covered through commercial auto insurance. Talk to your agent about potential policy limits regarding commercial vehicles used for personal time.
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Possible Exclusions
Depending on how your employees use the commercial vehicles, there may be possible exclusions. If one of your employees causes an accident while they are impaired by substance abuse, your business may not be covered. Any intentional damage isn’t covered, nor is any damage that occurs due to your employee breaking the law.
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Things to Consider
Comprehensive commercial auto coverage will protect your vehicle if it is stolen or vandalized. The policy also protects your fleet in unique situations, such as damage caused by severe weather or an accidental fire. You are also covered if any of your employees steal your commercial vehicle or damages it out of anger.
Commercial auto insurance can help prevent your business from suffering a financial catastrophe. However, it’s important to look over your policy carefully to ensure that you are protected in any situation. If you have a question about potential exclusions in your policy, contact our insurance experts at J. Archer Insurance Group.
