Commercial Auto Insurance

What is commercial auto insurance?

What is commercial auto insurance?

Personal auto insurance normally doesn't cover commercial vehicles. For businesses in Maine that have vehicles, there's commercial auto insurance.

Commercial auto insurance provides coverage for commercially registered vehicles that businesses own. Coverage may protect against vehicle damage, theft, accidents and more.

What business in Maine needs business auto insurance?

What business in Maine needs business auto insurance?

Maine state law generally requires that businesses with commercial vehicles get business auto insurance. Coverage beyond the minimum state requirements is recommended.

The state’s minimum coverage requirements are usually as follows:

  • Bodily Injury Liability of $50,000/person and $100,000/accident
  • Property Damage Liability of $25,000/accident
  • Medical payments coverage of $2,000/person

Many businesses opt for more extensive coverages and higher limits, due to the potential risks associated with driving vehicles. A single accident could easily exceed these minimums.

What types of vehicles is business auto insurance used for?

Business auto insurance is available for virtually all types of insurance the businesses use. Policies may cover cars, pickups, vans, straight trucks, larger trucks, fleets, and specialized vehicles (e.g. limousines, ambulances,etc.), among others.

While policies are readily available, it's important to make sure a policy is designed to insure the type of vehicle that's being insured. A knowledgeable insurance agent who specializes in these policies will be able to find vehicle-appropriate policies.

What coverages are usually included in commercial auto policies?

Commercial auto policies can be tailored to a business’s specific needs. Policies make a variety of coverages  available:

  • Personal Injury Protection (PIP): In an accident, may protect against medical and other expenses for the occupants in your company’s vehicle.
  • Bodily Injury Liability Coverage: In an accident, may protect against injuries caused to people outside your company’s vehicle.
  • Comprehensive Coverage: In a non-accident incident (e.g. animal strike, falling tree, burglary), may protect against damage to your company’s vehicle.
  • Collision Coverage: In an accident, may protect against damages to your company’s vehicle caused by a collision with another vehicle or object.
  • Gap Coverage: In an accident where the vehicle is a total loss, may protect against the financial liability arising from the difference between a remaining loan balance and the vehicle’s value.
  • Property Damage Liability: In an accident, may protect against the cost of damage caused to another person’s property by your company’s vehicle.
  • Uninsured/Underinsured Motorist Coverage: In an accident with an uninsured driver, may protect against damages caused by the other driver.
What coverages are businesses that finance or lease vehicles required to carry?

What coverages are businesses that finance or lease vehicles required to carry?

In addition to meeting the state minimum requirements, businesses that finance or lease vehicles usually have to meet other coverage requirements that the lender stipulates. 

Typically, the requirements include comprehensive and collision coverage, collision coverage and gap coverage. These three protections protect against the loss of a vehicle, helping protect a lender’s financial interest in the leased/loaned vehicle.

What is a hired and non-owned business auto policy?

When businesses rely on vehicles that they don't actually own, hired and non-owned business auto insurance is often used. This typically provides liability coverage in case an employee is in an accident while working, yet usually doesn't require a business to pay for other coverages like comprehensie, collision, and gap.

An insurance agent who specializes in business auto can assist with finding this particular type of policy, or any other commercial auto policy.

A cautionary tale

This owner loved fashion and had a knack for finding gently used clothing. One day, she decided to take a leap of faith and open her own vintage clothing boutique.

It didn’t take long for business to start booming for the boutique. It wasn’t long before she had an epiphany: Why not complete personal deliveries for locals?

It wasn’t long before she was making deliveries when the unthinkable occurred: she backed into a young man on a bicycle. While he was not seriously injured, he was hospitalized overnight for monitoring.

The next day, a claims adjuster called to inform her that since she was doing business at the time of the accident, her personal insurance policy would not cover the claim.

Stuck with a huge hospital bill and a lawsuit from the biker’s attorney, she was forced to shut down her business.

Why we're different

At our agency, you’ll speak with an experienced agent whose primary goal is to design a policy that fits your business’s particular needs.

Whether your commercial vehicle is for occasional use, a possible new venture, or a daily necessity, we are here to ensure coverage is applicable and answer any questions you may have.

While most insurance products are similar in price and function, insurance providers are very different when it comes to structuring a policy that actually covers you.
There’s no such thing as a one-size-fits-all insurance policy when it comes to your business.

We’re your neighbors. We protect businesses and people we know and care about, so we always look for ways to protect you better. To do this, we carefully choose the insurance companies we represent to be both affordable and responsive.

Contact us, and let our insurance professionals help you protect what you care about most.

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