If you run a business that has even just one vehicle, then you should look into getting commercial auto insurance. This will help you avoid large payments when an accident occurs and can give you peace of mind every time the vehicle is on the road.

Chances are that you were already required to purchase coverage for bodily harm and property damage when you purchased the vehicle for your business, but policies like that do not cover damage to the vehicle itself. This can leave you high and dry after an accident in the company van, car or truck, even if it wasn’t your employee’s fault.

Here is some useful information on commercial auto insurance and the things that you need to know about commercial vehicle accidents.

What Vehicles Does Commercial Auto Insurance Cover?

Ass with personal auto insurance, a commercial insurance plan can be as comprehensive as you want or need it to be. And, like personal insurance, the more coverage you have, the more it will cost you. This means that you need to know what you can afford and what you need to be covered.

If you went will a total comprehensive plan, commercial insurance would cover all types of vehicles you use, no matter where you get them from. This means that whether you own the vehicles outright, or you lease them, rent them or borrow them, they will be totally covered for any accident. This is the most comprehensive plan and one that you should strive for if you can afford it.

There are also generally two other types of coverage. The first — and the cheapest — will only cover vehicles you own, while the second type of plan will cover all vehicles you own or lease. Each plan has its pros and cons, so make sure you know what you need before buying one.

What Type of Damage is Covered?

Again, depending on your plan, there are several different areas of damage that commercial insurance will cover.

First, you can get collision coverage, which will only cover the damage that is done to the vehicle after an accident. This is the base coverage and one that you should always have if nothing else so you can avoid large sudden payment responsibilities.

Comprehensive coverage is the broadest type of insurance. It will cover damage to both vehicles (if it’s your fault) and it also covers such damage as wear and tear, weather phenomena, fire, theft, explosions and impacts with animals. This is the most expensive form of coverage because you are off the hook for so many things.

Finally, there’s “specified perils” coverage for specific instances that you can name in your policy. This can be used for vehicles that undergo odd conditions that may not be covered under comprehensive insurance.

Liability Coverage

Liability coverage is design to pay for damage to another vehicle that is caused by your commercial vehicle. You are required by law to have this just so that other drivers are protected.

Liability coverage can range from 10 or 20 thousands dollars worth of coverage up to one million dollars. Most insurance companies will recommend that you are covered for at least $500,000 because liability also includes any medical bills that the other driver may incur after the accident. In general, adding more liability coverage does not make a meaningful impact on the monthly rate, so get as much coverage as you can to be safe and still be able to make the payments easily.

Non-Owned Liability Insurance

If you have employees who use their own vehicles to conduct business for your company, then you may want to look into non-owned liability insurance as well. This will protect you from problems if an employee has an accident in their own car while on business.

This can include anything from an employee getting into and accident after stopping off to pick up lunch for a meeting at the office to an employee hitting another car while visiting a vendor or client. Without non-owned liability coverage, the person who the employee hit may be able to sue you for damages, costing you much more than an insurance policy would.

There are many things to think about when it comes to commercial insurance. Take the time to figure out what’s right for your business. For more information, you can visit this useful article: 18 Mistakes that Can Hurt Your Auto Accident Claim in Louisiana, and How to Avoid Them.