Just last month we posted an article regarding when to purchase commercial auto insurance.  Funny enough, the cost of commercial vehicle accidents has skyrocketed not too long after our blog post.  With that being said, we have already explained when your business may need commercial auto insurance, now we would like to explain what commercial auto policies are like.

Your business may not even need commercial auto insurance if none of your employees are driving on the job.  However, the risks of commercial vehicle accidents is very real; there are more than 5 million commercial vehicle accidents annually.

If that doesn’t convince you to carry commercial auto insurance, consider this:  The average commercial vehicle accident with injuries costs an employer $74,000, and $500,000 or more when fatalities occur.  And that’s not likely to change any time soon.

But what’s a commercial auto policy like?  What are the most common commercial vehicle accidents?  How do you file a claim? And most importantly, how can they be prevented?  The most common commercial auto claims are often covered by a process similar to those for personal auto policies, as described below.

No-fault accidents:  Insurers will file a claim with the at-fault party’s insurer, and the other party’s collision and/or liability coverage will pay for your repairs and incidental expenses. If the other person doesn’t have insurance or doesn’t carry enough coverage to pay your claim, your commercial policy would pay out under uninsured/underinsured motorists’ coverage.

At-fault employee accidents:  Collision coverage would pay for your damage, and your liability coverage (property damage and/or bodily injury) will cover the other party’s claim.

When an employee hits an animal:  Your commercial policy’s comprehensive coverage would pay for the damages to your vehicle.

Damage by something beyond your control:  This includes hitting an animal, damage resulting from poor weather conditions, theft, broken glass, falling tree limbs, and more.  Your comprehensive coverage would pay in this scenario.

If an accident were to happen on the clock, you’ll be glad you obtained the right coverage with Brazelton Insurance Group, especially in an at-fault accident; when commercial vehicles are responsible, you’re more likely to see larger claims and lawsuits.  And with commercial vehicle accident costs skyrocketing, it’s always better to be safe than sorry.