Commercial auto insurance is insurance coverage for business vehicles. This means the vehicle is used exclusively for business purpose. Coverage may be for a single vehicle used by a self-employed individual or a fleet of vehicles used by a large company. Various policies are available, and the type you need is based on the type of vehicle being insured and how the vehicle is used.
There is probably a law in your state that specifies coverage requirements for the location. The state might also have different coverage requirements. It is likely a vehicle used to carry passengers, such as a taxi, will have significantly different coverage requirements than a van used to haul products. In any case, liability coverage is the most important. Liability coverage pays other parties for their damages in an accident caused by the policyholder. This includes property damage expenses and medical expenses. If your company is sued for damages, then liability insurance will reduce out-of-pocket costs.
You can also purchase coverage to reimburse your business for vehicle repairs, and medical bills if the driver is injured. You can also get coverage for business products in the vehicle. Coverage limits and the deductible can be adjusted to make premiums affordable.
Even if commercial auto insurance is not required in your state, it can be a good idea. Think of the help you’ll receive in the event of an accident or lawsuit. That is worth the cost of the premiums and deductibles.