As a business owner, you need the same types of insurance coverage on the car you use for business as you do for your own personal vehicle. A Massachusetts commercial auto insurance policy provides coverage for property damage to others, bodily injury, and personal liability. It is important that any vehicles that are owned by the business have the company name listed as the “principal insured” on the auto policy. Make sure to check that an individual name isn’t listed on the policy, as this could cause problems.
In Massachusetts, a Commercial Auto Insurance policy typically covers the following:
Bodily Injury – bodily injury or death that occurs from an accident in which you are at fault.
Property Damage – damages that your vehicle accidentally damages someone else’s property.
Medical Payments – medical expenses for the driver and passengers
Uninsured Motorist – coverage for injuries that occur from either an uninsured motorist or a hit-and-run driver.
Collision – damage that occurs if your vehicle hit by another car or object
Comprehensive – damage from fire, theft, or something other than a collision.
Common commercial auto insurance misconceptions:
- Every employee is covered when driving any company vehicle.
It’s important to know that not all drivers may be covered. Some insurance policies state specifically who is covered under the policy. In such cases, it’s important to confine driving responsibilities to those who have coverage.
- You don’t need commercial vehicle insurance coverage if you have it for your own personal automobile.
If your personal automobile is only being used for personal reasons, there is no reason why you would need a commercial policy. However, if you use your vehicle for any business-related activity, it is incredibly important that you obtain commercial auto insurance. For example, if you mostly use your car for personal reasons but occasionally transport commercial goods or passengers that are paying you, that is considered being partially used as a commercial vehicle and would require coverage.
- Insurance premiums must be paid for in full and up front
Most insurance companies allow you to pay installments on your policy, so you do not have to pay in full to be covered. However, by paying in full, you may be able to earn a Pay in Full Discount, which can be a significant savings. Talk over payment plan options with your insurance agent.
We understand that you may have questions about the type of coverage that may be right for you. Please give us a call at 781-943-1555 to discuss what insurance will benefit you!