Commercial Auto Insurance for Businesses
Most states require commercial vehicles to be insured. And some vehicles must have insurance as part of an auto loan requirement. So that means commercial vehicles should have commercial auto insurance. A commercial vehicle is used for business purposes only. And one vehicle needs coverage just as much as an entire fleet. All must be insured per state law to legally drive on public roads.
Insurance requirements vary based on the type of vehicle and the activities the vehicle is used for. But a common requirement is liability insurance. Liability pays benefits for damages or injuries that you or your drivers cause to others. More options are available, but liability is the one type of coverage that is mandatory.
Options include collision and comprehensive coverage. Collision repairs your vehicle following a collision with another vehicle or object. Comprehensive pays for collisions as well as damages from theft, severe weather and more. If you financed your commercial vehicle, then one of these two types of insurance is usually required by a lender. Other options include coverage for towing, replacement vehicles, gap insurance, personal injury, vehicle contents and more.
If nothing else, get sufficient commercial auto insurance to meet state guidelines and any lender requirements. You can always add additional coverage later.