If you operate a business in California that involves vehicles, it’s crucial to protect your assets with commercial auto insurance. It is a legal requirement and safeguards you and your business from financial loss in an accident or other incidents.
Here are five incidents that commercial auto insurance covers in California:
1. Collision Damage
Collision damage is California’s most common type of commercial auto insurance claim. It covers damage to your vehicle caused by a collision with another vehicle or object, such as a tree or guardrail. If the collision damage is minor, the insurance agreement remains in force.
The seller must perform necessary repairs or reduce the cash portion of the purchase price equal to the damage incurred. You would be responsible for covering any replacement costs or repairs without collision coverage.
2. Bodily Injury Liability
Bodily injury liability covers the medical expenses and other costs associated with injuries sustained by another person in an accident where you’re at fault. Usually, a portion of your comprehensive liability auto insurance policy includes this kind of coverage.
The lowest bodily injury liability coverage necessary in California is $15,000 per individual and $30,000 per accident. Nevertheless, it would be best to buy greater limits to safeguard your company from lawsuits and other legal action. In general, including bodily injury liability coverage in your commercial auto insurance policy can offer important safety for your company in an accident.
3. Property Damage Liability
Property damage liability protects you if an accident for which you bear responsibility results in the destruction of property owned by someone else. It includes harm done to other automobiles, properties, and other structures. California’s minimum required property damage liability coverage is $5,000, but purchasing higher limits is advisable.
If the other party suffers property damage, their car, house, place of business, store, trees, or lampposts may need to be repaired. Property damage liability insurance can help cover these costs.
4. Comprehensive Coverage
Your car is covered by comprehensive coverage if it sustains damage from incidents other than crashes, like theft, vandalism, and natural catastrophes like fires and flooding. Although not necessitated by law, this sort of coverage might be a useful supplement to your insurance if your automobiles are at risk of these mishaps.
5. Uninsured/Underinsured Motorist Coverage
When you are involved in an accident with an uninsured driver or have insufficient insurance to cover your damages, an uninsured/underinsured motorist policy could safeguard you. The lowest limitations of $15,000 per individual and $30,000 per accident are mandated by law in California for uninsured/underinsured motorist coverage.
In the case of an accident with an underinsured or uninsured motorist, this coverage can be included in a commercial auto insurance policy to shield companies and their drivers from financial damage.
Summary
Any California organization that uses automobiles needs to make a vital investment in commercial auto insurance. You may choose the appropriate coverage amounts to safeguard your assets and company from financial damage by being aware of the types of occurrences that commercial auto insurance covers.
