You wouldn't dream of driving your personal automobile without insurance. It's just as important to protect your association-owned vehicles. Even if you have personal auto insurance, you still need commercial auto insurance. That's because vehicles involved in an accident while engaged in company business may not be covered by your personal insurance. To make matters worse, you could be charged with misrepresentation if you've placed a vehicle you use for commercial purposes under your personal auto policy.
What Commercial Auto Insurance Covers
There are a variety of coverages for your commercial autos, including business-use
autos, pickups, vans, trucks and non-owned and rented vehicles. In addition,
there is coverage available for "non-owned" vehicles-when employees
use their own vehicles to run errands; and rented vehicles-when an employee
travels and needs to rent.
Why should I purchase commercial auto insurance?
Many personal auto insurance policies exclude coverage if a vehicle is used
mainly for business. A commercial auto policy provides coverage for autos owned
by an association if these vehicles are in an accident. The insurance pays to
repair or replace the vehicle and the vehicle of the third party damaged by
the employee. It also pays for the medical expenses of those injured in an accident.
Will my employees' personal cars be covered under a commercial auto policy
if they are using their cars for business?
Most commercial auto insurance policies cover the liability for an association
if employees use their own cars for business, provided that the association
has purchased coverage for non-owned liability. Separate non-owned physical
damage coverage is available to cover actual damage to the auto. However, the
employees' personal auto policy would be the primary coverage for damage to
their automobiles.
