Understanding Your Business Auto Insurance Policy

If you have a designated vehicle for your business, you should be carrying a Commercial Auto policy for that vehicle, also referred to as Business Auto. Business Auto differs from personal auto in that it is specifically for vehicles that are designated for business use. While the basics are still the same, Business Auto coverage can look a little different than what you see on your personal auto insurance.

Understanding Your Business Auto Insurance Policy – Combined Single Limits

Business Auto policies often differ from personal lines when it comes to the coverage limits. Often times, instead of your typical split limits, Business Auto policies often have Combined Single Limits, or CSL. The Combined Single Limit is exactly as it sounds, it is a combined, single limit for an accident. You will often see this limit go up to $1,000,000 Combined Single Limit. It is important to recognize that with a CSL, you still must purchase uninsured motorist and med pay as a separate limit.

Understanding Your Business Auto Insurance Policy – Attached Equipment

One of the great features of most Business Auto policies is the attached equipment coverage you can elect to purchase. If you own a food truck, or own a modified business vehicle, you should strongly consider adding attached equipment to your Business Auto. This coverage is often very affordable and can save your business if you are heavily reliant on the equipment and something happens.

Understanding Your Business Auto Policy – Discounts

Business Auto policies can lower in price dramatically depending on certain factors of your business. Some carriers offer big discounts for paying the policy in full. Most carriers will give big discounts for having good drivers with clean records driving the Business Autos. You can also obtain discounts for owning a fleet of Business Autos. Additional discounts can be obtained by installing alarm systems, being continuously insured, or purchasing fleet management software to manage your fleet.

If you would like to learn more about Business Auto, give us a call! You can reach our Business Auto specialists at 925-297-4829.

[divider]

All information is general in nature and is intended to provide guidance only. It is up to you to request specific coverage options, the agency and agent do not bear this responsibility. Always read the policy if there is a questions about coverage or a claim. If any information herein should conflict with your actual policy’s specific language, the policy language will be controlling.