What is Commercial Auto Insurance?

A commercial auto insurance policy is required if you own a vehicle that's used for business purposes. This type of policy is similar to a traditional personal auto insurance policy with the prime difference being the fact that businesses have higher liability insurance requirements.

Who Needs Commercial Insurance?

The common misconception is that commercial insurance only applies to big rigs, but the truth is that this type of insurance is required on any vehicle used for business purposes, including cars, SUVs, pick-ups, utility vans, flatbeds, vehicles outfitted with equipment, limousines, taxis, fleet trucks, and of course, commercial tractor trailers.

The easiest way to determine if you need commercial insurance is to answer a simple question – is the vehicle used for business purposes? If it is, then it needs to be covered by a commercial insurance policy.

What Does Commercial Insurance Cover?

Commercial insurance provides liability coverage to the purchaser. So, if your vehicle is involved in an accident in which your driver was responsible, then your company's assets will be protected. The commercial insurance will cover the damages and medical expenses for those affected or injured in the accident.

Most commercial policies also offer a number of different add-ons to help make one's coverage more comprehensive. For example, you may be able to add on additional coverage for your employees, your equipment, and your business.

How Much Coverage Does a Business Need?

Every state designates its own minimum commercial insurance liability requirements. In North Carolina, "a for-hire operation engaged in interstate or foreign commerce with a GVWR (gross vehicle weight rating) of 10,000 pounds or more and transporting non-hazardous property, the minimum liability required is $750,000.00."

In addition, "the Motor Vehicle Laws of North Carolina states that any owner of a commercial motor vehicle shall have financial responsibility for the operation of the motor vehicle in an amount equal to that required for for-hire carriers transporting non-hazardous property in interstate or foreign commerce. (G.S. 20-309. a1) The minimum required is $750,000.00."

Do You Need a Truck Accident Attorney in Wilmington NC? Call The Rodzik Law Group

If you were involved in an accident that was caused by a commercial vehicle, call The Rodzik Law Group today at 910-762-1199 to schedule a free initial consultation with our personal truck accident attorney in Wilmington NC. Our personal injury attorneys are highly experienced in cases involving commercial insurance providers. We have the ability to fight back against the big insurance companies and we can help you get the compensation you deserve. And best of all – you don't pay us unless we win your case. Accident cases have statute of limitations so don't wait – call now!