What Types of Businesses Need Commercial Auto Insurance?
If you’re uncertain whether you need commercial auto insurance, there are a few things to consider. Generally, a commercial auto insurance policy is necessary if your Colorado company uses vehicles for business purposes. This may include the following:
- Transporting goods or people for a fee
- Conducting a service with the vehicle
- If employees operate the vehicle
- If ownership is in the name of a corporation or partnership
Personal insurance policies may exclude certain business uses and vehicle types, so having appropriate coverage is essential.
Is Commercial Auto Insurance Required in Colorado?
Commercial auto insurance is required in Colorado for certain types of businesses and vehicles. The state of Colorado requires businesses to maintain minimum amounts of commercial auto insurance liability coverage for vehicles used for business purposes.
In addition to liability insurance, businesses that lease or finance vehicles may also need other types of commercial auto insurance, such as collision coverage, comprehensive coverage and uninsured/underinsured motorist coverage.
Specific requirements for commercial auto insurance in Colorado may vary depending on the type of business and vehicle used. For example, commercial trucks may have higher insurance requirements than passenger vehicles.
Businesses should regularly review their insurance coverage to ensure they meet the state’s requirements and adequately protect their assets.
Commercial Auto Insurance for Specific Industries
Businesses in certain industries should consider commercial automotive coverage to help protect their assets and employees. For example, specialty trade contractors often overlook the need for commercial auto insurance.
Businesses in the building construction industry typically need commercial auto insurance to help protect against accident-related litigation while safeguarding company assets, including vehicles, equipment and products. In the event of an accident, commercial auto insurance can help business owners mitigate the cost of an expensive accident and protect their businesses from litigation.
Real estate agents may not initially see the value in commercial auto insurance. But they may need to carry commercial auto insurance to comply with Colorado laws.
Small business owners may want to consider adding their personal vehicles to a commercial auto insurance policy to ensure appropriate coverage.
Contact McDonald Insurance Group in Littleton, CO, to start building your tailored commercial auto insurance policy and get a 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.
Categories: Commercial Auto