Are you a commercial marine freight carrier in need of goods in transit insurance? Do you have a unique form of vehicle such as dump truck or tractor, and need to know the umbrella coverage requirements?  If you are in need of information about commercial auto insurance, talk to an agent who thoroughly understands this complex business. Here is some basic information to understand.

What does commercial auto insurance cover?

Even if you use your vehicle for both business and personal use, you may want to consider a commercial auto insurance plan to protect you as a business owner. This means that if your business is sued over an accident, it will not be liable. At its minimum, this type of insurance covers bodily and property damage liability. Commercial auto insurance may also cover:

• Collision coverage—Collision coverage will come with a deductible, which is the amount you have to pay before insurance kicks in, and an upper limit, which is the total amount the carrier will pay for an accident.
• Comprehensive coverage – this includes theft, natural disasters and other non-collision events.
• Uninsured motorist coverage – Uninsured motorist coverage will pay for bodily and property damage if you or your employee is hit by someone without insurance.

Why should I purchase commercial auto insurance if I already have a standard or business owner’s policy (BOP)?

A business owner’s policy is a package plan that covers property, business interruption, crime and other aspects. A standard auto insurance plan is just a personal car insurance policy. Here are ways in which these plans can fall short of protecting your business:

If you have employees driving company vehicles, commercial auto insurance protects you while they are driving them. Standard auto insurance does not.

Even if you have commercial auto coverage through your business owner’s policy (BOP), it may come with limitations that you are uncomfortable with. Commercial auto insurance will protect you further.  Theft of equipment from the vehicle is one thing that may not be covered through your BOP.

Purchasing commercial auto insurance may make you eligible for big discounts that you wouldn’t get through BOP or a standard plan.

How Do I Choose an Agency?

An agency that is local will understand how your state works in terms of transportation laws. In Texas, for example, commercial vehicles weighing more than 26,000 pounds must have at least $500,000 in coverage. And if you are running a for-hire carrier business, you must be able to demonstrate financial responsibility. It is vital that you work with an agent who understands the nuances and legalities involved.

Look for an agent who has been in the commercial auto insurance business long enough to fully understand how it works. Many agents are moving into this industry in order to compete, and this influx of green agents has resulted in substandard policy writing. If you are in or near Tyler, get a commercial auto insurance quote today.