Running a business that involves the use of automobiles can be complicated, but dealing with commercial auto insurance can be more difficult, especially when you don’t know which one to choose. One of the most challenging decisions you will make as a business owner is choosing the right insurance policy that is capable of protecting your business assets and employees against unexpected financial loss and the threat of a lawsuit. The first step in choosing the right type of auto insurance is to understand the different types of commercial insurance coverage that are available.

Basically, commercial auto insurance divides vehicles into two main categories

• Private passenger cars, such as cars, vans, SUVs, and small trucks.
• Trucks, Trailers, and Tractors including Pickup Trucks, Dump Trucks, Dry Cargo, Cooler Box, Car Transporter, Tanks, etc.

There are two main categories of commercial auto insurance: general insurance and specialty commercial auto insurance.

General Commercial Auto Insurance is made up of six types of coverage

1. Full coverage: This type of coverage kicks in when a vehicle is vandalized or damaged by something other than another vehicle, such as an animal or a fallen tree.
2. collision insurance: This type of insurance covers damage to a vehicle that occurs when the vehicle is struck by another vehicle or object or the vehicle rolls over. This type of insurance is very necessary for vehicles with a loan or lease.
3. Uninsured or Underinsured Motorist: This type of insurance covers damages and medical expenses incurred in an accident caused by a motorist who is uninsured or underinsured.
4. Liability insurance: This type of insurance is generally required by most states. It activates when you cause an accident. It protects you not only from damages, but also gives you a legal defense in case the other party files a lawsuit against you. “Property damage liability” covers damage to another party’s car or property, while “bodily injury liability” covers injury or death caused by the car accident.
5. Medical Payment Coverage: This type of insurance covers medical expenses incurred by anyone in your vehicle due to a car accident, regardless of who is at fault for the accident.
6. Personal Injury Protection: This type of insurance covers injury-related costs incurred by you or your employees when you are involved in an accident, regardless of who is at fault.

the specialized commercial auto insurance It is intended for companies that require the use of specialized vehicles to carry out daily activities. Some common types of custom coverage that are designed to protect specialty vehicles include catering truck coverage, landscape vehicle coverage, and trade-related vehicle coverage.

In conclusion, no matter what type of business you operate or the type of motor vehicle you use, a business insurance policy can be customized to meet your specific needs.