Any time you drive for business, there is a chance you will cause an accident. The same goes for your employees who drive while on the job. If you have sufficient business auto insurance with liability coverage, you should not have to pay for the repairs to the car you hit. You also should not have to pay the hospital bills of any people who are injured in the accident, because liability insurance will pay for them. It works just like personal auto insurance does, but for vehicles used for business.
Your liability auto insurance helps to pay costs associated with damages to objects and harm caused to people. For instance, if an employee hits another car while on business and causes damage to that car, the insurance will cover the cost of its repairs. If the occupants of the other car are injured, this insurance will help to pay for their resulting medical expenses or fees associated with a lawsuit. There is a limit on your policy as to how much can be paid out per incident.
Physical damage coverage is another important portion of your business auto insurance policy. The point of this coverage is to pay for any repairs you need for your company’s cars after an accident. Just one part of this type of insurance is comprehensive coverage, which you can use to replace your vehicle if it is stolen. Comprehensive coverage also pays for repairs when your business vehicle is vandalized or damaged due to a natural disaster. Another component of physical damage coverage is collision coverage, which pays for repairs when your car is damaged during a collision of any kind. You can also add specialty coverage to your company cars if you want to be covered for specific instances.