Commercial auto insurance provides coverage for drivers and businesses who use vehicles for business purposes. The coverage typically includes liability for bodily injury and property damage, as well as coverage for medical expenses and other losses.
When it comes to commercial auto insurance, it’s important to understand what is and isn’t covered. Commercial auto insurance generally provides coverage for accidents involving vehicles used for business purposes, such as delivery vans, taxis, and other vehicles used to transport goods or people. However, some types of accidents are not covered by your commercial auto insurance agency, including:
1. Accidents That Involve Vehicles Used for Recreational Purposes
Traveling out of town sounds fun when you have a vehicle of your own—until your car crashes and you’re faced with the financial burden of repairs and medical bills. Remember, your commercial auto insurance is not responsible for covering the expenses of these types of accidents. This is because recreational vehicles are not used for business purposes.
2. Accidents That Involve Uninsured or Underinsured Motorists
If you’re in a mishap with an uninsured or underinsured driver, it’s important to remember that your insurance agency won’t be able to provide coverage for your losses. This means you’ll have to rely on other sources of compensation to cover any costs associated with the accident. But to protect yourself in this situation, you’ll need to purchase uninsured/underinsured motorist coverage, which can help cover your medical expenses and other losses.
3. Accidents Caused by a Driver Who Was Under the Influence of Drugs or Alcohol
There are instances when the driver has had a drink or two while on duty. And although it’s illegal to drive while under the influence, it still happens. In these cases, the driver is liable for the damages caused by accident, and the insurance company may refuse to cover the losses. You may also take legal action against the driver to receive compensation.
4. Accidents Involving Defective Automotive Parts
Determining who is at fault is often difficult when a car accident occurs. This is especially true when a defective part in a vehicle is involved. While car manufacturers and suppliers of defective parts can often be held liable for such accidents, insurance agencies find it difficult to prove their responsibility. In these cases, it’s important to contact a lawyer specializing in product liability to determine who is liable and how to receive compensation for your losses.
5. Accidents That Involve Intentional Damage
Intentional damage pertains to accidents in which a driver deliberately causes harm to another person or vehicle. This can include road rage, racing, or other intentional acts of aggression. In these cases, your auto insurance company might not cover the damages, as intentional damage is typically excluded from coverage. In such cases, you may need to contact a personal injury lawyer to pursue legal action against the responsible party.
Final Thoughts
While commercial auto insurance can cover most accidents, it is important to understand what is not covered to ensure you are adequately protected in the event of an accident. Furthermore, business owners should ensure that they have the appropriate coverage limits and deductibles to cover any potential costs associated with an accident. Taking these steps can help to protect a business from financial losses due to an accident not covered by commercial auto insurance.
Pascal Burke Insurance Brokerage Inc. is a reliable insurance agency that provides commercial auto insurance policies for businesses of all sizes. We understand the risks associated with owning a business and can help you find the right coverage to protect your business and its assets. Contact us today for more information.