What Is Commercial Auto Insurance?

Commercial auto insurance is a specialized form of coverage designed to help protect vehicles used for business purposes. This insurance is essential for businesses that own or lease vehicles used for transporting goods, delivering services, transporting clients and other business-related activities. Depending on the included coverage, it may help provide financial protection against potential losses and liabilities resulting from accidents, theft and other vehicle-related incidents.

What Does Commercial Auto Insurance Cover?

Commercial auto insurance offers a range of coverage options tailored to the needs of businesses. Louisiana requires all businesses to maintain minimum amounts of commercial liability auto insurance, although the state’s minimum amounts of coverage may be inadequate for your company’s needs.

If you finance or lease vehicles, the lienholder typically requires full coverage car insurance, including comprehensive and collision coverage.

Your agent may recommend tailoring your commercial auto insurance to include the following optional policies and endorsements:

• Uninsured/underinsured motorist coverage

• Cargo insurance

• Auto glass coverage

• Roadside assistance

• Rental reimbursement coverage

How Does Commercial Auto Insurance Work?

Commercial auto insurance operates similarly to personal auto insurance but with adjustments for business-related risks.

The premium for commercial auto insurance is determined based on several factors, including the type of business, the number and types of vehicles, the driving history of employees and the extent of coverage.

If an incident occurs, such as an accident or theft, the business files a claim with their insurance provider. The insurer will then assess the situation, determine coverage eligibility and provide compensation for covered losses according to the commercial auto insurance policy’s terms.

Contact Us

Contact DJW Insurance Agency in New Iberia, Louisiana, to explore your commercial auto insurance options and get a personalized quote.