There are many different types of insurance, of which automobile insurance is its own category. However, if you are an Atlanta business owner in charge of employees that drive vehicles as a part of their job, this complicates things a bit. You now need insurance not only for your place of business but also for the vehicles and drivers themselves. This is where commercial auto insurance comes into play. Commercial auto insurance is similar to trucking insurance but applies to more than just semi-trailers. Let’s take a look at the different types of commercial auto insurance available to your Atlanta small business:
What Are the Different Types of Commercial Auto Insurance?
Commercial Liability Insurance
This type of policy will cover you (the business owner) and your company if you or one of your drivers gets in an accident that is their fault. Commercial liability insurance allows you to pay for the damages you cause others; however, it does not cover any damage that was incurred to you, your driver, or the company vehicle. There are two common components of commercial liability insurance:
This coverage is the component that will pay for the other party’s medical bills if they were harmed in the accident. There are often two pieces of the bodily injury insurance pie: the limit per person and the limit per accident. When you set up your commercial auto insurance policy, you’ll determine these upper limits at that time.
Property damage coverage, on the other hand, is the portion of commercial liability coverage that pays for damages to the other party’s property: car, house, landscape… etc. There is usually only one upper limit on property damage, the amount for which will be selected when you finalize your commercial auto insurance policy.
Some commercial liability policies will combine all three limits into one, large, lump sum. For example, instead of having separate numbers for per person bodily injury, per accident bodily injury, and property damage, you may see one number that can be used for all three coverages.
Commercial Physical Damage Insurance
This type of commercial auto insurance is intended to cover you, your driver, and your vehicle in the event that the guilty party’s insurance doesn’t completely cover your damages. Commercial physical damage will also cover your assets if the accident is your fault. The following coverages are available under the commercial physical damage policy.
Collision insurance will only cover the cost of repairs for damages that are caused by a collision, overturn, or roll. If the accident was determined to be the other party’s fault, their liability insurance will help cover the costs that collision insurance would cover, as well. In the case of a total loss (your vehicle is totaled), the policy will pay out the vehicle’s estimated value, minus any deductibles.
Comprehensive insurance coverage comes into play when a vehicle is damaged due to anything other than a vehicle-on-vehicle collision. The types of scenarios that comprehensive coverage applies to will vary by agency, but the most common ones are fire, theft, inclement weather, vandalism, animal collisions.
If your business operates heavy, expensive trucks and machinery, it makes sense to insure them against everything imaginable. Specific perils coverage, also known as combined additional coverage or limited comprehensive coverage, essentially protects your vehicles against anything that comprehensive doesn’t: vandalism, fire, theft, earthquakes, lightning, explosions, floods, collision with an animal, and inclement weather.
Medical Payments Insurance
Medical payments coverage can help supplement you and your employee’s existing medical insurance in the event of an accident. While not always necessary, this coverage type can help your employees considerably, especially if their medical insurance will not cover all of their bills. Offering these types of coverages can improve workplace morale and general happiness at your company. This coverage type often includes workman’s compensation, as well.
Uninsured/Underinsured Motorist Insurance
For states like Georgia, where the uninsured motorist numbers are abnormally high (about 16% of drivers), uninsured/underinsured motorist coverage can be extremely helpful. If you or one of your drivers were to get into an accident with an uninsured motorist, this coverage would kick in.
Where Can I Get Commercial Auto Insurance in Atlanta?
If you are a small business owner in Atlanta, shopping for commercial auto insurance can be complicated and stressful. Luckily, the team at Apex Insurance can assist you with a quote. As you fill out our Commercial Auto Insurance Quote Form, you may need to refer to the following terms and explanations. If you are unsure which coverage is best for you, get in touch with us.
Commercial Auto Liability – This coverage includes both “bodily injury” and “property damage” insurances that cover only the third party involved in the accident. This insurance package comes in multiple tiers of coverage amounts.
Commercial Auto Cargo – This coverage will pay for any damage done to the cargo that the vehicles involved were carrying. You can insure up to $1 million of cargo with us.
Commercial Auto Bobtail – This type of coverage is a liability-only policy for the driver that is also responsible for the accident. It will not pay for any property damage incurred during an accident.
Commercial Auto Physical Damage – This coverage will pay for damages to your vehicle that are the result of an accident with another driver, regardless of whether that third party is to blame.