What is Business Auto Liability
Business auto liability insurance is an essential coverage for your business. Not only is this coverage required by law, but if you or an employee is sued following a serious accident, liability insurance helps protect your company’s assets. Business auto liability insurance will help cover the financial responsibility if your insured or their employee is at fault in an accident. A minimum amount of commercial auto liability insurance (or proof of financial responsibility) is required in most states.
Your inured will need this coverage if:
- Their business owns, leases or rents vehicles
- Employees drive company-owned, leased or rented vehicles
- Employees drive their own vehicles while conducting business
Also note that just because there is a minimum insurance limit required by law that does not mean that the minimum suits your clients needs. While no one can predict what the future will hold, it is always best for your clients to carry as much Liability insurance as they feel comfortable with since amounts to be paid above a limit fall on the insured to pay.
Business Packages typically combine two or more coverage into one policy. Most often it is Property and Commercial General Liability but can incorporate other Marines Lines and Automobile. Each coverage will have it’s own coverage form however.
There is also the famous BOP or Business Owners Package generally intended for the small to medium business that has property exposure in addition to premises and auto.
Commercial General Liability:
General Liability Insurance (CGL) covers claims of bodily injury or other physical injury or property damage. CGL policies cover claims in four basic categories of business liability:
- Bodily Injury
- Property Damage
- Personal Injury (including slander or libel)
- Advertising Injury
CGL does not cover vehicles for auto liability, professional liability exposure nor any claim arising out of a workers compensation injury.