Liability Coverage for Commercial Auto Insurance

Commercial auto insurance can provide a financial safety net for companies, protecting them from the economic fallout of accidents and other incidents involving their vehicles. One of the most critical components of this insurance is liability coverage, which can shield businesses from the costs associated with damage and injuries caused by their vehicles.

Types of Liability Coverage

Liability coverage typically includes two main parts:

• Bodily injury liability can cover medical expenses, lost wages and property damage for individuals injured in an accident caused by your company vehicle.

• Property damage liability can cover repairing or replacing damaged property in an accident. This can include other vehicles, buildings or any other property affected by the incident.

Commercial auto liability coverage pays only up to the policy’s dollar limits. Many Texas companies purchase additional liability insurance to help ensure appropriate coverage in an at-fault accident.

Determining the Right Coverage Limits

Higher coverage limits provide greater financial protection and can help cover the costs of severe accidents that result in substantial medical expenses or property damage. It is essential to assess the specific needs of your business and the potential risks associated with your operations. For example, businesses that operate in high-traffic areas or transport valuable goods may require higher coverage limits to ensure adequate protection.

If your company uses semitrucks or certain heavier vehicles, you must purchase enough liability insurance to satisfy federal regulations.

Learn More

Contact On the Coast Insurance Agency for a personalized commercial auto insurance quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.