THURSDAY, MARCH 25, 2021
Does Commercial Auto Insurance Cover Theft?
If your business uses commercial vehicles for work purposes, you will need commercial auto insurance. Commercial auto insurance protects your business’ vehicles in case of accidents, damage and theft.
The area of commercial auto insurance that covers theft of your vehicles is comprehensive coverage. As with auto insurance, comprehensive coverage under commercial auto insurance covers damages or loss due to fire, wind, hail, lightning, smoke, theft, vandalism and more.
Additional commercial auto insurance policies to consider include:
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Collision Coverage: This coverage provides compensation for damages that occur due to a collision with another vehicle or object.
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Bodily Injury Liability: Bodily injury liability is required by most states and provides medical compensation for the other driver and their passengers if you cause an accident.
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Property Damage Liability: This coverage is also required by most states and helps pay for property damage you may cause while operating the insured vehicle.
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Personal Injury Protection: Personal injury protection helps with medical expenses for the driver and their passengers no matter who caused the accident.
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Uninsured/Underinsured Motorist: Uninsured and underinsured motorist coverage helps pay for damages if you crash with a driver who doesn’t carry an adequate amount of car insurance.
Does Commercial Auto Insurance Cover Employee Theft?
So, comprehensive coverage in a commercial auto insurance policy covers theft, but what if it’s an employee who’s responsible for the theft? Some employees may refuse to return company vehicles until certain demands are met, especially if said employee was recently fired. If an employee suddenly drives off with a company vehicle and refuses to return it, contact the police and open an investigation. Your commercial auto insurance should cover such an incident involving theft, but it’s best to check with your insurance agency about the extent of your policy.
How to Avoid Commercial Vehicle Theft
Take precautions to avoid having to file a commercial car insurance claim due to theft.
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Have set rules on when an employee can use the company vehicle and who can drive. Have these rules posted where every employee can easily access and see.
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Purchase an adequate amount of liability insurance to cover employee actions
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Have employees sign policies agreeing to use limits of company vehicles
Commercial auto insurance claims may be denied if an incident is ruled as negligence on behalf of the business.
If you have questions about your commercial auto insurance policy, be sure to speak with your insurance agent about adjusting your insurance coverage.
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