When it comes to commercial auto insurance, businesses often have questions about the extent of their coverage, what happens in specific scenarios, and what they need to be aware of to stay protected. In this post, we’ll walk through some key questions that business owners and employees might have, covering everything from transportation expenses to liability and physical damage coverage.
Discover answers to common questions about commercial auto insurance, including coverage for stolen vehicles, physical damage, and transportation expenses. Get the info you need to make informed decisions about your business auto coverage.
1. Is Mexico covered under the business auto coverage form?
One common question we receive is whether a commercial auto policy provides coverage when driving in Mexico.
Answer:
No, the business auto coverage form does not cover Mexico. Coverage territory includes the United States, its territories and possessions (such as Puerto Rico), and Canada. If you’re driving in Mexico, you’ll need a separate insurance policy specific to that country.
2. How long does transportation expense coverage take to kick in after a vehicle is stolen?
If your commercial vehicle is stolen, you may wonder when the insurance will begin covering the cost of a temporary replacement vehicle.
Answer:
The transportation expense coverage extension begins 48 hours after a covered vehicle is stolen. This extension provides reimbursement of up to $30 per day for a temporary vehicle, up to a maximum limit of $900.
3. What happens if my employee falls asleep at the wheel and damages a company vehicle?
Accidents can happen, and you may be concerned about what happens if an employee causes damage to a company vehicle while driving for work.
Answer:
If the vehicle is damaged in a collision, such as when a driver falls asleep at the wheel, collision coverage would apply under the business auto coverage form. Collision coverage pays for damages to a covered vehicle if it overturns or collides with another object.
4. How much does transportation expense coverage pay per day if my vehicle is stolen?
Businesses need to know how much they will be reimbursed if they need to rent a replacement vehicle while their stolen vehicle is missing.
Answer:
Under the transportation expense coverage extension, the policy will pay up to $30 per day for temporary transportation, with a maximum limit of $900 in total. This helps businesses avoid costly disruptions while waiting for their vehicle to be recovered or replaced.
5. What additional coverage is available for sole proprietors and their families under the individual named insured endorsement?
Sole proprietors often wonder if their personal vehicle usage or that of their family members is covered under their commercial auto policy.
Answer:
The individual named insured endorsement extends liability and physical damage coverage to the sole proprietor and their family members for both owned passenger vehicles and nonowned autos. This endorsement ensures that personal auto usage by the business owner and family is adequately covered, filling any gaps in coverage for non-business-related driving.
Conclusion: Making Sure You’re Covered
Commercial auto insurance can be complex, but understanding your coverage options is crucial for protecting your business. Whether you’re concerned about transportation expenses after a vehicle theft, physical damage to a company vehicle, or extending coverage to family members, being aware of these key points can help you make informed decisions.
Have more questions about your business auto insurance? Contact us today to review your policy and ensure you’re fully protected!
