Knowing what is covered by your insurance policies is just as important as understanding what isn’t covered. A commercial auto liability insurance policy is important if your business uses vehicles as part of its daily routine. Check with an agent to fully understand your insurance policy. Here are some common exclusions.
If the driver of the vehicle acts in a way that is expected to or intentionally causes property or bodily damage, the insurance may deny coverage. This could include acts of road rage or acts of recklessness. Racing is another type of act that might not be covered. Make sure drivers know to be defensive, not aggressive.
Claims That Fall Under Workers’ Compensation
The auto insurance policy is secondary to benefits that would come from workers’ compensation insurance or another type of disability policy. You may need to work with the adjusters to determine which benefits are paid by which policy.
Personal Property in the Vehicle
If you transport personal property in commercial vehicles, the insurance policy may not cover damages to the property. You may need an additional policy. Other people’s property may not be covered. This is something that you should discuss with an agent.
A commercial auto liability policy is important to your business, just know what is covered and what isn’t.