Confused about commercial auto insurance? Whether it’s an SUV or a sedan, Internet information is available any time, or eager agents from any insurance company will answer questions over the phone or in person. In the United States, the laws regarding commercial auto insurance vary from state to state. Most states have mandatory requirements for business vehicles, but the types of coverage mandated also differ and should be adhered to in order for the business to collect in the event of an accident.

In some states, proof of auto insurance must be presented before a personal driver’s license is issued. The same goes for commercial auto insurance. Of the many types of coverage available, liability, personal injury, comprehensive, and medical are the most common, although commercial insurance has differences in the specific aspects of the policy that relate to businesses. Many companies opt for more than the compulsory insurance, especially if the vehicle is used for dangerous jobs (such as demolition of buildings) and would therefore have a greater risk of injury or accident on the job.  Some businesses may need to include coverage for survivor benefits in the case of an accidental death.

Protecting business vehicles and the people who drive them is an important part of overall good business practices. A company can go into financial ruin from one lawsuit. Auto insurance for company vehicles is a tool to help businesses comply with state regulations and assure employees that they are covered in the event of an accident. Size of business, type of vehicle, and what it’s used for will determine what types of coverage are needed.  The spectrum of insurance needs ranges from small businesses with just one vehicle that is also used for personal travel to companies with several hundred vehicles that are used for heavy labor.

Details and reading the fine print are important to understanding exactly what is covered by the insurance policy and what, if anything, will be the responsibility of the business. It never pays to short change employees when it involves auto insurance. Just as Workers Compensation protects both the employer and the employee in the workplace, commercial auto insurance offers that same protection while employees are on the road.