When Is Commercial Auto Insurance Coverage Denied for an Accident?

When Is Commercial Auto Insurance Coverage Denied for an Accident?

Feb 15, 2023

Commercial Insurance

Situations where commercial auto insurance is denied for an accident

Accidents can happen instantly, and when they do, they can cost you a lot of money. That’s why commercial auto insurance is essential to protect your business from potential financial losses. However, you must know when your insurance will cover your loss and when it will not. In this blog post, we’ll discuss what commercial auto insurance is and the instances when it may not provide coverage.

Commercial Auto Insurance: An Overview

Commercial auto insurance protects vehicles used exclusively for business purposes. This includes vehicles that are used to transport goods or people or are owned by a company. The coverage typically includes liability protection, which covers expenses related to property damage and bodily injury, and physical damage coverage, which covers any damage to the vehicle itself from an accident or other mishap. Commercial auto insurance also covers any medical expenses for anyone injured in an accident, and the cost of any repairs to the vehicle. Depending on the policy, it may also cover the cost of a rental car if the vehicle is being repaired.

Personal Vehicles for Commercial Use

It’s important to note that commercial auto insurance does not cover personal vehicles or personal use. This means that if an employee uses their private car for business purposes, such as making deliveries, they will not be covered by the company’s commercial auto insurance policy. It’s important to ensure that any drivers using their vehicles for business purposes have the appropriate coverage in place.

However, buying hired or non-owned vehicle coverage may add leased vehicles to your commercial auto insurance. Auto insurance for personal and commercial use is calculated differently and cannot be combined. Suppose you have to use your car for business operations. In that case, you must ask your insurer for added coverage, or else in the event of an accident, your insurer may deny coverage, and you will have to pay for the damages from your pocket.

Coverage for Theft and Vandalism in Commercial Auto Insurance

Commercial auto insurance will cover loss due to theft and vandalism of company vehicles if you have comprehensive coverage in your policy. However, the coverage may be subject to certain limitations and exclusions, so it’s important to read the policy carefully to ensure that you understand the terms and conditions.

Commercial auto insurance is an essential type of coverage for businesses that use vehicles for business purposes. It protects against potential financial losses due to accidents, theft, and vandalism. However, it’s important to note that it does not cover any intentional damage, destruction of property, or any personal vehicles or personal use. It’s important to ensure that you understand the terms and conditions of your policy to ensure that you have the appropriate coverage in place.

Cover Your Business Vehicles with East End Insurance!

If you’re looking for the right commercial auto insurance, East End Insurance Agency can help. We offer a range of commercial auto insurance policies that can provide the protection you need for your business. Contact us today to learn more.

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