Massachusetts businesses that have commercial vehicles generally need to procure insurance for their vehicles, and most personal auto insurance policies aren’t suitable for commercial cars and trucks. Instead, commercial vehicles usually have to be covered by a commercial auto insurance policy.
Commercial auto insurance policies share many commonalities with personal auto policies, but there also are differences between the two. Commercial policies generally are adapted to better meet the needs of companies, which might have different types of vehicles and more than one vehicle to insure.
Broadly speaking, the vast majority of Massachusetts businesses that own vehicles need a commercial auto policy. State law requires most cars and trucks that are taken on public roads to be insured with at least minimum levels of protection, and many businesses need more protection than the state demands.
The following are a few examples of businesses that may have to carry a commercial auto policy:
Since many different businesses need commercial auto coverage, insurance companies offer a variety of different types of policies. Some of the more common policy options are traditional commercial auto policies, fleet insurance policies, and hired and non-owned policies.
Traditional commercial auto policies are used in a wide variety of situations where companies actually own the vehicles they use. These policies offer many coverage options for commercial vehicles, and they can often be used to insure anywhere from a single vehicle to a whole group of cars.
Fleet insurance policies are specifically designed for companies that have many vehicles to insure. These policies may be adapted to cover cars, vans, trucks or other vehicles, and they come with many coverage options. Most fleet insurance policies also have substantial aggregate limits since they’re protecting many vehicles.
Hired and non-owned policies are used by businesses that operate vehicles they don’t own. Pizzerias that have employees use personal cars when making deliveries, for example, might need a hired and non-owned policy. Normally, these policies offer only liability protection and limit their coverage to when a vehicle’s being driven for work.
An insurance agent who specializes in commercial auto, fleet insurance, and hired and non-owned policies can help businesses select the type of policy that’s right for them. After selecting the most appropriate type, the agent can also assist with choosing coverages, deductibles, limits and other options.
There are many different coverages that commercial auto policies might make available. Some of these are included as standard protections, and others are typically offered as optional features. A few of the more common coverages that can be obtained though policies include:
If you’re responsible for a Massachusetts business that has commercial vehicles, contact the independent insurance agents at Roger Keith & Sons Insurance when your business needs new commercial auto insurance. Our agents can help you explore policy options from many insurance companies in the state, and they’ll be able to help you decipher which one offers your particular business the best protection.