Commercial Vehicle Liability Insurance

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Commercial vehicle liability insurance is mandatory in all US states. Getting the right amount of liability protection in place will help you to protect your assets in the event of an accident. It is important to know that your personal auto insurance won't cover your vehicles for business use. 

So whether your business has one vehicle or a fleet of buses, vans or dump trucks, be sure to get adequate liability coverage. Your business is liable for accidents that you or your employees may cause. Liability insurance will protect your company from a resulting liability claim or lawsuit.

As a business owner, you will need commercial vehicle insurance for every vehicle in your fleet, as well as coverage for all of your drivers. If you have larger delivery vehicles such as dump trucks, semis or tractor trailers, you should consider commercial truck liability as well. 

Find an independent agent today to get the right commercial auto liability insurance for your needs.

Cost of Lawsuits in the US

  • Annual cost of civil lawsuits to the US economy: $429 billion
  • Average compensation payout for injury lawsuits: $52,900

What Does Commercial Vehicle Liability Insurance Cover?

Commercial vehicle liability insurance will cover you, the business owner, for any of your vehicles that are insured under your commercial insurance policy. 

There are exceptions for anyone else with your permission to drive vehicles you own, hire, or borrow – including employees who are specifically designated as drivers or employees who run a quick errand. 

Do not assume that all of your employees who are drivers are covered until you speak with your insurance company, because your unique situation will dictate the liability coverage you need.

Always Have Adequate Commercial Auto Liability Insurance

Business owners often put their valuable company assets at risk without realizing it. All it takes is a little research to determine how much coverage makes sense for your company’s size, assets and risk. An independent agent can help you evaluate your needs.

Here are some of the most serious risks you face if you don’t have adequate commercial auto liability:

  1. Your business may be breaking the law. Your state has minimum requirements for commercial vehicle liability insurance. Be sure to get the mandatory coverage in place. If you rely on a personal vehicle policy when driving a limo, taxi, bus or commercial truck, there is a good chance you are breaking state law.
  2. Your business investments may be at risk. If you are like most business owners, you have made a significant investment in your commercial vehicles. It may seriously impact your company’s bottom line if you have to find the cash to pay for damage or replacement of a vehicle. Minimal commercial auto insurance liability coverage may only cover a portion of the costs following an accident. In the event of a serious claim or lawsuit, your company may need to pay a significant amount out of pocket for restitution.
  3. Your business assets may be at risk. In the aftermath of an accident that causes personal injury, a bare-bones policy may only cover a small fraction of a plaintiff's medical bills and repairs. Personal injury entails court costs and other legal fees and, unfortunately, can become very expensive. Make sure you evaluate your needs and risks and compare coverage from multiple insurance companies before you commit to a commercial vehicle liability insurance policy. A local independent agent can help.

Umbrella Policies and Commercial Motor Vehicle Liability

Umbrella insurance policies provide added protection for instances when your standard commercial motor vehicle liability insurance is not adequate, like in a serious accident. 

Your commercial auto liability may be enough to cover the cost from most minor incidents. However, if one of your employees causes a major accident, an umbrella policy will ensure that your business is still covered.

An umbrella policy is an inexpensive way to get additional coverage that kicks in after your commercial auto insurance liability coverage is exhausted. 

For example, if you are covered to a limit of $1 million, but you get sued for $1.5 million, your umbrella liability policy will cover the outstanding $500,000. This can be the difference between bankruptcy and keeping your business afloat.

Getting the Right Commercial Truck Liability Coverage

If your business vehicles include dump trucks, tractor trailers and other commercial trucks, then you will need to purchase truck liability coverage. 

This coverage will protect you against damage and injuries you or one of your employees may cause to other drivers as a result of a truck accident. Most states make truck liability coverage a legal requirement, and you will need to have proof of coverage before you begin operations.

Umbrella policies are an especially good idea for businesses that use large trucks such as tractor trailers, dump trucks and car haulers, because these vehicles can cause significant damage in traffic accidents. Consider doing a full cost/benefit analysis of various types of insurance with the help of an independent agent.

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Getting Help with Your Motor Vehicle Liability Insurance

There is a lot to consider in relation to commercial motor vehicle liability insurance. Independent insurance agents work with multiple insurance companies that offer every different type of commercial coverage. You’ll be able to make one call and get many quotes that will fit your needs as a business owner.

An agent who specializes in commercial vehicle insurance can help you explore all of your business insurance needs. Your agent can help with every aspect of your business coverage, from commercial auto insurance to professional liability, property insurance, product liability, fraud protection and many other types of commercial coverage.

Find a local independent agent today and get advice that will help you ensure that your business is completely covered for even the most serious accidents.

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