Tuesday, November 30, 2021

Commercial Auto Insurance: Common Questions Answered

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Commercial auto insurance is one of the most common preferences when companies buy a business insurance plan in Alberta. This insurance is needed to cover different automotive segments, including trucks, vans, and cars.

A commercial auto insurance policy should provide proper coverage from small businesses to large fleets. In the following sections, let’s look at some of the most common questions associated with commercial auto insurance:

What does commercial auto insurance mean?
Commercial auto insurance covers physical damage and liability for situations and amounts not included in personal auto insurance. Many commercial vehicles come under this- from automobiles used for business purposes to a whole range of commercial trucks and cars. In a nutshell, all vehicles you use for transport and logistics are a part of this particular policy and are a requisite when you run a business with heavy transport.

Why do you need commercial auto insurance?
There are certain vehicles used for business that won’t be covered in personal auto insurance policies. Since individual auto policies were not made for businesses, they have not been structured precisely the way you would require for your business. A company often needs the particular coverage found in a commercial auto insurance policy. But, in all likelihood, if you have logistics involved, commercial auto insurance has to be a part of your business insurance plan in Alberta.

Coverage in detail:
Your commercial auto insurance needs to be bang on when it comes to definitions, exclusions, limits, auto insurance, and coverage, amongst other aspects. Here are the components of the policy:

● Your insurance policy will have property damage liability coverage, which gives you protection if your owned vehicle damages another person’s property and provides you with a legal defense.

● Bodily injury liability coverage talks about physical injury or death resulting from an accident that has taken place because of you. In such a case, you would need legal defense.

● This policy also covers the damage to your vehicle caused by vandalism, theft, flood, fire, and other unforeseen circumstances.

● Another highlight of this policy is to get an add-on of uninsured motorist coverage. Herein, the motorist who is not insured also gets taken care of in case of an accident.

● The medical payments are paid for the driver and the passengers in your insured vehicle at the time of the accident. This is one huge cost for a business if not planned wisely. It’s important to get your drivers insured as well so that you have additional coverage in times of need.

How to choose the right broker for a business plan in Alberta?
Your commercial auto insurance policy does not only cover the owner but co-passengers and family members as well. But, it’s essential to pick the right policy. You can find yourself in a financial soup if you choose the wrong approach.

In case of an accident, you would need to deal with- loss of vehicle, medical and legal costs associated with the accident, and much more. So, we highly recommend you choose the right insurance broker and insure your business with the right policy.

With the right kind of commercial auto insurance, you won’t have to worry about any financial liabilities or unforeseen expenditures in case of any loss or accidents to your automobiles. Get the right advisor on board to help you pick the perfect commercial auto business insurance plan in Alberta.

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