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Commercial Vehicle Liability Insurance

You will need commercial auto insurance for your business vehicle. It is common for caterers to have catering insurance alongside commercial vehicle insurance. Questions like how does commercial insurance work and all those unanswered questions revolving around this insurance are answered in this article.

Does the law require commercial vehicle insurance?

As long as you have a vehicle that helps in operating your business, having insurance is helpful. It is a requirement to have commercial auto insurance unless you are in Virginia or New Hampshire. In the states where it is not required by law, drivers and business owners may still be held liable for damages.

What does commercial auto insurance cover?

It is common to be asked what is covered under a commercial auto policy? If you have commercial auto liability insurance, the cost of accidents is covered. If there are medical expenses, property damage, and legal expenses, the insurer takes care of you. In some policies, you will get protection against vandalism, theft, and other forms of damage.

How much commercial Auto insurance is needed?

Every state has its requirements for minimum coverage. A certain amount can be allocated in uninsured motorist coverage, bodily injury liability coverage, and property damage liability. You can always buy the minimum required to meet the state requirements. You may be asking do I need commercial auto insurance. As long as you have a car used for business purposes, it would be best to have this insurance.

Does a delivery driver need commercial insurance?

The risks that drivers and rideshares face make it hard to find coverage that works for them. So how does commercial car insurance work? Some providers do not provide coverage for this type of driving unless you are an employee of a business such as restaurants, grocery stores, or catering services. In such cases, the employer purchases hired and non-owned auto insurance that protects employees from any liability. During the covid19 pandemic, some states insisted that insurers provide coverage for contract drivers that provide medicine, food, and other essential services. Those who work as independent contractors for a delivery or rideshare company can request their insurance agent to extend their coverage.

How do I buy commercial auto insurance?

First, you need to select the insurer that you want to use. Then fill out the online application for commercial vehicle liability insurance, which usually takes about 20 minutes. In the application, you will be required to fill in your business location, number of staff, and estimated revenue. Usually, you will get several quotes from the top carriers once you have filled the application. Please go through them and select the policy that best works for you. If you get stuck in the process, there is always an agent on standby to assist. When you buy a policy, you can access your account and get the receipt and proof of insurance. The process usually takes a day or two to finish the process and get insurance for the business.

What happens when a policy is canceled?

When a policy is canceled prematurely, you risk paying more for coverage as time goes by. Insurance firms charge higher rates to companies that start then stop coverage. By canceling your coverage, you expose your company to potential risks.

Please contact TWFG Insurance at 713-388-6681 to receive a free quote today.