Commercial Auto Liability Insurance

It is important to protect your business with commercial auto liability insurance coverage. This applies whether you are a single worker or run a fleet of commercial vehicles.

At American Insurance Brokers, we connect you with affordable and comprehensive coverage for your business operations. No matter where your journey takes you, we understand your need for commercial auto liability insurance.

It needs to be affordable and straightforward. We provide you with the best options available. Here’s everything you should know about commercial auto liability insurance.

What is commercial auto liability insurance?

Commercial auto liability insurance protects businesses from financial loss in the event of an accident involving a company vehicle. It may cover bodily injury or property damage if you’re at full or partial fault for an accident. It may also pay for your legal defense costs in the case of a lawsuit.

What’s the difference between general liability and commercial auto insurance?

General liability and commercial auto insurance are two different types of policies that protect a business from severe financial loss. All businesses need general liability insurance. For those who use vehicles in their business operations, commercial auto insurance is also required.

General liability covers claims arising from the operations, products, or services of a business. Businesses may face lawsuits due to slip and fall accidents or product defects. General liability insurance can help cover the associated expenses.

Commercial auto insurance is different from other types of insurance. It covers accidents caused by vehicles that a business owns or leases to run its operations. If a business’s truck causes bodily harm or property damage, commercial auto insurance would help cover expenses.

Who needs commercial auto liability insurance coverage?

Most states require that businesses have commercial auto liability insurance when operating vehicles for commercial use. While requirements vary from state to state, you probably need commercial auto liability insurance if you:

• Transport goods or products
• Offer certain services, such as towing
• Haul heavy loads of materials or equipment
• Drive passengers in your vehicle for a fee
• Have employees who operate your vehicle(s)

This type of policy generally covers any type of vehicle for commercial use, including cars, vans, SUVs, and trucks. It is a must-have for any company that owns, leases, rents, or borrows vehicles for commercial use.

Other policies, such as personal or general liability, aren’t enough when you’re using vehicles for commercial use. There is much more at stake when you factor in employees, passengers, and additional usage. Without commercial auto liability coverage, many companies can’t survive the financial impact of a lawsuit.

What does commercial auto liability insurance cover?

Commercial auto liability insurance is a policy that is essential for businesses that operate vehicles for commercial use. A policy typically includes the following:

• Bodily Injury Coverage provides protection for damages caused by the policyholder when they are at fault. This includes medical bills and lost wages for any driver or passenger injured in the accident.
• Property Damage Coverage covers expenses for repairs or replacements of property. This includes other vehicles, equipment, buildings, or even a pet. These expenses are only covered if you are at fault.
• Collision Coverage for damage to your vehicle no matter who caused the accident.
• Comprehensive Coverage for damage to your vehicle in the case of an incident such as vandalism, theft, or natural disasters.
• Uninsured/Underinsured Motorist Coverage can help if you’re in an accident with an uninsured or underinsured motorist. It can cover damages like lost wages and medical bills.

This coverage might include other costs, like legal bills in the event of a lawsuit. The amount of coverage is limited to the option you choose.

What does commercial auto liability insurance exclude from coverage?

Commercial auto liability insurance coverage will protect your business in a range of situations, but there are always exclusions. This does not mean you can’t find coverage for these instances. It will simply be a separate type of insurance you should obtain.

Here are a few examples:

• An incident that occurs when an employee operates their own vehicle for commercial use
• Short-term and long-term disability benefits are typically covered under workers’ compensation. This protection is necessary if an employee is injured while driving a company vehicle.
• Expected or intended injury resulting from an incident where the driver meant to cause harm
• Employer’s liability for claims made against you by injured employees
• Damage to any objects within a company vehicle as a result of an accident

These types of coverage can be found in other policies. Our team at American Insurance Brokers can advise you on all of the coverage you need based on your business.

Does a commercial insurance umbrella policy cover auto liability?

A commercial insurance umbrella policy is a separate type of insurance that businesses must carry. It provides extra coverage beyond the limits of the other policies a business holds. In other words, this policy helps pay for any remaining costs following an incident after your baseline policies have run out.

Let’s say one of your employees caused an accident in a company vehicle. The injured party may sue for $2 million in damages. If your commercial auto liability insurance only covers up to $1 million in damages, your commercial insurance umbrella policy can help cover the remaining $1 million.

It is best practice for a business to have a commercial auto liability policy and a commercial insurance umbrella policy.

What factors affect the amount of commercial auto liability insurance I need?

There are many factors that will determine how much commercial auto liability coverage your business needs. These factors include the following:

• Type and size of your business
• State(s) in which your business is located
• Size of your fleet
• Distances and lengths of time your fleet travels
• Type(s) of cargo you carry
• Driving records of your business and/or employees
• Condition or age of your vehicles

One of the biggest factors is the state in which your business is located. Most states require a minimum amount of coverage for commercial vehicles. However, your business may require more than the state’s minimum, depending on the other factors listed above.

American Insurance Brokers has a knowledgeable team. They are ready to examine your business needs. They will take into account all factors to find the optimal policy for you. We find policy matches for businesses located across the South, including Louisiana, Texas, Alabama, Mississippi, Tennessee, Arkansas, and Georgia.

How much is commercial auto liability insurance?

The Federal Motor Carrier Safety Administration (FMCSA) has outlined the minimum requirements for interstate freight carriers. Vehicles with a GVWR over 10,000 pounds require a company to have a minimum of $750,000 in liability insurance.

This figure is just a starting point. If your fleet hauls hazardous cargo, you might need to carry much higher insurance limits. Some states even require higher limits than that set by the FMCSA.

In general, many companies opt for more than the minimum required coverage. This provides peace of mind in a devastating crash that could lead to expensive litigation. To understand the amount of commercial auto liability insurance you may be required to carry, American Insurance Brokers can help.

Our knowledgeable team will provide free policy reviews for any type of commercial vehicle. This allows us to learn more about your business to find the best policy match. American Insurance Brokers works with over 35 top-rated truck insurance companies. This allows them to get the best price for your insurance.

Does commercial auto insurance cover personal use?

You or your employees may use a commercial vehicle for personal use in many situations. For example, if you provide transportation to and from the airport, it may be typical to also use your vehicle for personal use to return home.

Most commercial auto liability insurance policies will still cover you in these instances, but there are usually conditions attached. This may depend on how often you use it for personal use or what type of vehicle it is.

The team at American Insurance Brokers is well-versed in these types of questions and concerns. We can help guide you toward the right policy decisions to ensure your protection at all times.

When your business is on the line, it’s important to have someone you can trust in your corner. We won’t leave you high and dry once the process of finding your policy is over. Our goal is to provide the answers you need as soon as you need them as long as you’re under our care. If you have a question along the way, all you have to do is ask.

Get your free coverage review, and find out why American Insurance Brokers is your first choice for commercial auto insurance across the southern U.S.

Does it cover out-of-state work?

While Louisiana is our home base for operations at American Insurance Brokers, we understand the unique needs of our drivers. Crossing state lines can be a typical and necessary part of your business.

Most commercial auto liability insurance policies include built-in protection when you’re traveling out of state. This is important because of the varying state requirements. In most cases, if you’ve purchased the minimum requirement for your state, you will be covered in other states. Your policy will provide protection within the scope of the minimum required limit wherever the accident happened.

American Insurance Brokers can provide you with the coverage you need. This will give you peace of mind, regardless of where your business takes you.

How do I comply with regulatory filings?

American Insurance Brokers will help you with obtaining commercial auto liability insurance. We can also assist with filing the necessary regulatory documents. These are important legal documentation tasks that you must fulfill to do your job.

For example, we provide the following state and federal commercial vehicle insurance filings:

• FMCSA: Proves Federal Motor Carrier Safety Administration registration
• MCS90:States that the driver’s financial commitment meets the state’s minimum requirement
• BMC34:Provides cargo liability coverage
• BMC91-X: Shows public liability insurance (such as bodily injury, property damage, or environmental restoration)
• Form E: Demonstrates that drivers carry the minimum required insurance for their home state
• Form H: Confirms that drivers carry the minimum required cargo liability insurance for their home state
• OS/OW COI:Proves to Louisiana that drivers have sufficient liability insurance to operate oversize or overweight vehicles
• SR22: Shows that drivers have filed minimum liability insurance with their home state’s motor vehicle department

Because different situations require various filings, our team will take a close look at your needs to ensure accuracy. We will always work with your team to ensure we’ve filed the appropriate paperwork for your company.

How do I know I have all of the coverage I need?

At American Insurance Brokers, we provide free annual policy reviews for any type of commercial vehicle. This is an opportunity to make sure you’re getting the coverage you need at the right price.

First, we’ll examine your current deductibles and limits. The amount you will have to pay before the insurance company makes any payment (your deductible) should be relatively low. The insurance company is required to pay a considerable amount for your industry and risk profile. This amount should be high in comparison to other limits.

Next, our team will check for compliance with the regulatory filings previously discussed. Your insurance company should always keep you informed when you are enrolled in one of their policies. This includes ensuring you are up to date on the various forms.

Finally, we’ll make sure you’re on board with a responsive insurance company. You will get the most competitive price for your insurance, as well as excellent customer service if challenges occur.

AIB is your first choice

At American Insurance Brokers, we’re proud to have decades of experience in states across the southern region. We should be your first stop for commercial auto liability insurance before you hit the road. Our team will find the best policy for your business at a price that is fair and reasonable.

When your business is on the line, it’s important to have someone you can trust in your corner. We won’t leave you high and dry once the process of finding your policy is over.

Our goal is to give you the answers you need quickly. We will do this while you are under our care. If you have a question along the way, all you have to do is ask.

Get a free coverage review today. Discover why American Insurance Brokers is the best choice for commercial auto liability insurance across the southern United States.

Finally, we’ll make sure you’re on board with a responsive insurance company. You will get the most competitive price for your insurance, as well as excellent customer service if challenges occur.