An important safeguard for your business is auto liability insurance. If an employee is sued following a serious accident in a car or truck you or your business owns, liability insurance helps protect your company’s assets.
Most states require Business Auto Liability Insurance. It helps cover the financial responsibility if you or an employee is at fault in an accident and people are injured, or their property is damaged. A minimum amount of commercial auto liability insurance (or proof of financial responsibility) may be required in most states. Some states may also require underinsured motorist and uninsured motorist coverage. This protects you when the at-fault driver is unable to pay the total cost. Collision or comprehensive insurance is often optional.
As far as how much commercial auto liability coverage is needed, there are no clear rules around how much business auto coverage is required. Some carriers require at least $100,000 commercial auto liability coverage per vehicle, with a recommended minimum of $500,000 up to a maximum of $1 million.
Who needs commercial auto liability insurance? You need this protection if
- Your business owns, leases, or rents any vehicles
- You or your employees drive company cars for both business and personal use
- Employees drive company-owned, leased, or rented vehicles
- Employees drive their own vehicles while conducting business
Contact us today for more information!