If you own a business that relies on drivers and vehicles to maintain or increase revenue, you’ll need to invest in commercial auto insurance. While this type of insurance is similar to personal auto insurance, it offers additional protection for your company. Additionally, you may need to meet certain requirements set by the state. New Jersey sets its own standards, and you’ll be expected to comply with them as a business professional. Here, Muller Insurance describes the protections afforded by commercial auto insurance, who benefits most from them, and specific minimums set by the state of New Jersey.
What is Commercial Auto Insurance?
Commercial auto insurance differs from regular insurance in that it’s designed to protect you and those who drive your company’s vehicles. While personal auto insurance covers damages and liability, it only covers family members who are also listed on the policy. Business owners have a unique responsibility to their drivers, their vehicles, and accidents involving the two.
A typical policy covers the vehicle itself in a collision, but may also pay for damages due to animals, falling objects, vandalism, and storms. However, there are special options for business owners with transportation needs. Your commercial auto insurance coverage may include the following:
- Expanded towing: This coverage ensures companies that transport products over large distances don’t need to pay out of pocket to tow a vehicle if it falls outside the range of a typical policy.
- Medical coverage: In the event of an automobile accident where you, an employee, or a passenger is injured, this coverage option takes care of the hospital bills.
- New vehicle replacement: Collision insurance won’t always cover the full cost of a totaled vehicle. This option can help get you back on the road after a total loss.
- Roadside assistance: Whether it’s a flat tire or engine problem, this commercial auto insurance option gives your drivers peace of mind knowing they’ll never be stranded on the side of the road while on the job.
An additional option in umbrella liability, which can assist with costly legal fees, in the event an insurance claim is brought before a court.
Who Should Invest in Commercial Auto Insurance?
Having the right coverage in place is important to protecting your livelihood. Anyone who owns a business that utilizes drivers and vehicles should at least consider a commercial auto policy. However, several specific businesses benefit most from this type of insurance:
- Cleaning services
- Food trucks
- HVAC technicians
- Real estate agents
These businesses spend a large portion of any given workday on the road, transporting products to consumers. Because these businesses are on the road more often than others, it increases the chances of an automobile accident.
Discuss Your Needs with Muller Insurance
Every state has its own set of requirements regarding commercial auto insurance. While the required personal injury protection (PIP) and liability coverage may be included in basic commercial auto insurance policies, the state of New Jersey has set certain requirements that every company must meet.
Additionally, you must acquire uninsured motorist coverage if your employees are involved in an accident with someone who doesn’t have the proper coverage. Discussing your options with an insurance adviser can help ensure you have the policy you need.
Muller Insurance provides comprehensive commercial auto insurance to business owners in NJ as well as NY, CT, PA, NV, and other states. We’ll work with each client to help them choose policies in compliance with current state regulations. Contact us today to learn more about commercial auto insurance.