You’ve already got the “must have” Commercial General Liability Insurance so your company is covered, right? Not necessarily. If you send your employee out on a sales call or to a job site, and your employee is involved in an accident resulting in a lawsuit against your company, there likely will not be coverage under a General Liability Insurance Policy, which excludes damages arising out of the use of an automobile. It is thus very important for businesses to purchase automobile liability insurance.
Car accidents happen every day. We all know it is far more dangerous to travel by automobile than to by airplane. In the business world, this translates into potential liability exposure in the event you or one of your employees is involved in a car accident in which a third-party is injured. General Liability Policies, also called Commercial General Liability Policies, provide coverage for “bodily injury.” But, they also exclude coverage for “bodily injury” arising out of the use of an auto. Thus, although you may have bought Commercial General Liability Insurance for your business, you will also need to purchase Commercial Vehicle Liability Insurance for your business as well. The more that driving is a part of your business, the more important Commercial Vehicle Liability Insurance will be. As liability caused by an automobile is excluded under Commercial General Liability Insurance policies, make sure to consider purchasing a Commercial Vehicle Liability Policy to protect your business.
In purchasing Commercial Auto Liability Insurance, you will want to consider whether you want coverage for any auto, so that as an insured you are covered regardless of who owns the vehicle, or only for vehicles owned by the company, or only those vehicles that are specifically listed on a schedule. In addition, you will want to give consideration to the liability limit – make sure you obtain enough coverage to protect your company in case of accident. Commercial Automobile Liability Insurance is a must for any company, especially if employees are required to drive as part of the company’s business. Don’t forget to consider buying Commercial Automobile Liability Insurance when purchasing Commercial General Liability Insurance.