Business auto liability insurance is an important safeguard for your business. If you or an employee is sued following a serious accident in a car or truck you own, liability insurance helps protect your company’s assets.
Who needs commercial auto liability insurance?
You need this protection if:
- Your business owns, leases or rents any vehicles
- Employees drive company-owned, leased or rented vehicles
- Employees drive their own vehicles while conducting business
- You or your employees drive company cars for both business and personal use
It’s required in most states
Business auto liability insurance helps cover the financial responsibility if you or an employee is at fault in an accident and people are injured or their property is damaged. A minimum amount of commercial auto liability insurance (or proof of financial responsibility) is required in most states.
Some states also require underinsured motorist and uninsured motorist coverage to protect you when the at-fault driver is unable to pay the total cost. Collision or comprehensive insurance is often optional.
Is minimum coverage enough?
Minimum required commercial auto liability coverage varies by state, and typically is the same for both personal and commercial auto liability policies. Many companies opt for more than state-minimum coverage. Why? Because if an injured party sues for a larger amount than the minimal policy covers, it could seriously threaten many small businesses.
How much commercial auto liability coverage do you need?
There are no clear rules around how much business auto coverage you need. Nationwide requires at least $100,000 commercial auto liability coverage per vehicle, with a recommended minimum of $500,000 up to a maximum of $1 million.
For even more coverage, consider a business commercial umbrella policy. It picks up where your business auto liability, general liability or other liability coverage stops. Commercial umbrella insurance is an inexpensive way to get extra coverage against bodily injury and/or property damage.
For example, if your current commercial truck liability insurance policy covers you for $1 million and you are successfully sued for $1.5 million, your commercial umbrella coverage can pay the outstanding $500,000 – so you don’t have to.
How do I get commercial auto liability insurance?
Find an agent and talk to us. Get started protecting your business vehicles today.