Commercial Auto Insurance
Who Needs Commercial Insurance?
If you own a business that employs drivers for delivery or transportation purposes―such as a shuttle service or food delivery business―you will likely be required by the state to carry a certain amount of commercial liability insurance. Even if your state does not require commercial liability insurance, purchasing a commercial auto insurance policy will protect your business from financial responsibility in the event of an auto accident.
Once you have a clear idea of the commercial coverage the business carries, you can informed decision regarding the purchase of additional insurance.
Advantages of Additional Liability Insurance
Many companies and CDL drivers opt to purchase more liability insurance than the minimum required. The reason for this is that in the event of a serious accident, the minimum is often not enough to cover all repair and medical expenses.
The amount of liability insurance you need depends on several factors―such as the nature of the business and driving extent―insurance professionals generally recommend carrying at least $500,000 liability coverage per accident.