A commercial auto physical damage program provides coverage for damage sustained to the vehicle itself. Collision coverage will cover damage sustained in a crash with another object or in the event that the vehicle turns over. Comprehensive coverage covers damage or loss caused by something other than a collision. In this case, it needn’t necessarily be damage to the physical body of the vehicle; if the vehicle were stolen, that would be covered under this comprehensive program as well.
What Is a Commercial Vehicle?
When you think of commercial vehicles, you might think of eighteen-wheel big rigs. These are indeed commercial vehicles, but commercial vehicles are not mutually exclusive of vehicles typically intended for private passenger use. The distinction is in how the vehicle is used. For example, a van owned by a daycare provider and used solely for the purpose of transporting children to and from the daycare center would be considered a commercial vehicle.
What Is the Difference Between Physical Damage and Liability?
Liability insurance is generally required for commercial vehicles. If you injure someone else or cause damage to another person’s property, those damages are covered by liability insurance, but liability does not cover damage to your vehicle. Physical damage coverage is generally optional and covers damage sustained by your vehicle in a collision; for example, if you crash into a tree.
You can help to protect your business assets with a commercial auto physical damage program. These plans can be integrated into a package policy or purchased separately.