SmartComplianceSmartComplianceSmartComplianceSmartCompliance
  • Who We Serve
    • Risk Managers
      • Commercial Certificate of Insurance Tracking
      • Commercial Certificate of Insurance Issuance
      • Residential Proof of Insurance Tracking
    • Insurance Brokers & Consultants
      • Commercial Certificate of Insurance Tracking
      • Commercial Certificate of Insurance Issuance
    • Insurance Carriers & Providers
      • Residential Proof of Insurance Tracking
    • Property Managers
      • Commercial Certificate of Insurance Tracking
      • Residential Proof of Insurance Tracking
    • TPAs
      • Commercial Certificate of Insurance Issuance
    • Self-Insureds
      • Commercial Certificate of Insurance Issuance
    • Service Providers
      • Commercial Certificate of Insurance Issuance
  • Solutions
    • Commercial Risk Management Solutions
      • Certificate of Insurance Tracking
      • Certificate of Insurance Issuance
    • Residential Risk Management Solutions
      • Proof of Insurance Tracking
  • Resources
    • Case Studies
    • News and Blog
    • Free Guide
    • Newsletter Signup
    • Press
  • Contact
  • Login
  • Get Started
Get monthly updates on the latest insurance technology news and developments.
SUBSCRIBE

Guide to Understanding Your Business Auto Insurance Policy

May 4, 2020 | By SmartCompliance | Industry Highlights
Share this post   

Guide to Understanding Your Business Auto Insurance Policy

Any business using vehicles in their normal operations need to have a commercial auto insurance policy. On top of having the correct policies in place, businesses need to assure they’re keeping track of and staying up to date on any changes in the policies.

This article explains what commercial car insurance is, how it works, things that affect coverage, and how SmartCompliance helps businesses keep track of their policies.

What is commercial auto insurance?

With commercial auto insurance, any vehicles a company owns as well as the employees who drive them have coverage. Apart from company-owned vehicles, any other vehicles used in business operations have coverage. This includes employees’ cars and rental cars used for business operations.

How does commercial auto insurance work?

Like with regular car insurance policies, commercial car insurance policies have several types of coverage under one policy.

Basic coverage includes liability, medical payment/personal injury, collision, comprehensive and uninsured/underinsured motorist coverage.

In addition to basic coverage, commercial car insurance offers coverage that standard car insurance policies do not.

Additional coverage includes:

  • Coverage for trailers your company uses, but are owned by other companies.
  • Payment for temporary rental vehicles when the company vehicle is out of service.
  • Rental vehicles for employees or clients.
  • Use of employee’s cars for job-related functions.

Things That Can Affect Required Coverage

There are three things businesses need to ask when purchasing a commercial auto insurance policy. We’ll explain each question below.

Who owns the vehicle?

When deciding whether or not to purchase commercial car insurance, it’s important to look at vehicle ownership. If the company owns the vehicle, it needs commercial auto insurance. On the other hand, if an employee owns the vehicle the type of coverage required varies.

When an employee owns a vehicle that could qualify for commercial car insurance, the determining factor for coverage is vehicle use.

What is the vehicle used for?

In most cases, if employees are only using vehicles to commute to and from the office, commercial car insurance is not needed. If the vehicle transports people, goods, or equipment for the company, commercial auto insurance is necessary.

What is the vehicle make and model?

Sometimes vehicles need coverage regardless of who uses them or what they’re used for. Trucks over 1,000 pounds or those with load capacities over 2,000 pounds and any vehicles with commercial modifications must have commercial coverage.

Keeping Track of Commercial Auto Policies with SmartCompliance

Maintaining employee and vehicle safety doesn’t end at purchasing commercial car insurance. To sustain safety, managers need to update and track these policies.

Using SmartCompliance to track commercial auto policies ensures all policy requirements are met. Sign up today for a free demo to see how you can ensure your vehicles and employees are covered by using SmartCompliance.

Related Posts

Insurance for Franchises: What Kind of Insurance Do You Need?

6 Tips to Mitigate Construction Project Risk

Related Posts

  • Laptop on black background with artificial intelligence code on the screen and a smartwatch in the background.
    Industry Highlights
    February 19, 2019

    Artificial Intelligence: How to Harness It to Improve Insurance Compliance

  • Laptop on a desk with a dashboard on the screen showing a COI automation software to help avoid costly insurance claims.
    Industry Highlights
    March 6, 2019

    3 Technology Features That Help Effectively Review COIs and Avoid Costly Claims

  • A desktop computer at a desk with a graph on the screen showing increased compliance.
    Customer Stories
    March 6, 2019

    How to Increase Client Compliance by 60% With COI Tracking Software [Case Study]

  • A person sitting at a desk with a pen in their hand working on insurance endorsement compliance.
    Industry Highlights
    April 25, 2019

    The Importance of Collecting and Reviewing Endorsements

  • Two man on a construction site wearing hardhats and yellow vests working on a construction claim.
    Industry Highlights
    June 20, 2019

    The Top Four Types of Construction Claims and How to Effectively Prevent Them

  • A woman working on a laptop with a certificate of insurance tracking software.
    Industry Highlights
    July 12, 2019

    COI Tracking Software vs. Manual Tracking Methods

  • Man standing in front of a screen with a map of franchise locations that are in compliance because of certificate tracking software.
    Customer Stories
    July 18, 2019

    How Franchises Can Increase Compliance to 95% with Certificate Tracking Software [Case Study]

  • Two people at a desk with a laptop reviewing a certificate of insurance.
    Industry Highlights
    September 5, 2019

    The Ultimate Guide to Certificates of Insurance (COIs)

Talk to Sales: (888) 818-4651
Talk to Support: (866) 610-7594

NEWSLETTER SIGNUP

OUR SOLUTIONS
  • Commercial COI Tracking
  • Residential Renters Insurance Tracking
  • Commercial COI Issuance
RESOURCES
  • Case Studies
  • News & Blog
  • About Us
GET IN TOUCH
  • Contact
  • Request A Demo

SmartCompliance provides insurance tracking and compliance management solutions to commercial and residential insurance professionals. Our self-service and full-service solutions automate certificate of insurance or proof of insurance renewals, eliminate manual data entry and help ensure end-to-end compliance.

Copyright © 2020, SmartCompliance, Inc. All rights reserved | Privacy Policy | Terms of Use
  • Who We Serve
    • Risk Managers
      • Commercial Certificate of Insurance Tracking
      • Commercial Certificate of Insurance Issuance
      • Residential Proof of Insurance Tracking
    • Insurance Brokers & Consultants
      • Commercial Certificate of Insurance Tracking
      • Commercial Certificate of Insurance Issuance
    • Insurance Carriers & Providers
      • Residential Proof of Insurance Tracking
    • Property Managers
      • Commercial Certificate of Insurance Tracking
      • Residential Proof of Insurance Tracking
    • TPAs
      • Commercial Certificate of Insurance Issuance
    • Self-Insureds
      • Commercial Certificate of Insurance Issuance
    • Service Providers
      • Commercial Certificate of Insurance Issuance
  • Solutions
    • Commercial Risk Management Solutions
      • Certificate of Insurance Tracking
      • Certificate of Insurance Issuance
    • Residential Risk Management Solutions
      • Proof of Insurance Tracking
  • Resources
    • Case Studies
    • News and Blog
    • Free Guide
    • Newsletter Signup
    • Press
  • Contact
  • Login
  • Get Started
SmartCompliance