Whether your firm owns one car, a whole fleet, or has employees and attorneys utilizing their personal vehicles for company business, commercial auto coverage from Lawyers Insurance Alliance can help. Insurance through LIA provides confidence that your assets and employees are safe in case of an accident or damage.
In fact, a business auto insurance policy from Lawyers Insurance Alliance covers cars, trucks, or other vehicles designed for use on public roads.
These policies include many standard features of personal auto coverage, including:
- rental reimbursement
- uninsured and underinsured motorists
Additionally, these policies also go a step further to include:
- Higher liability thresholds.
- Collision insurance, regardless of fault.
- Non-owned car liability covering employees’ personal vehicles used for business purposes.
Does your firm need commercial auto insurance?
If your law firm owns a vehicle (usually leased vehicles for firm partners), you will very likely need a commercial insurance policy. For example, Utah requires commercial auto insurance coverage for business-owned vehicles.
Even when commercial auto insurance coverage isn’t required for your law firm, it’s still a smart choice. Without it, you could end up paying hundreds of thousands of dollars in medical bills and other costs.
What does business auto insurance cover?
Commercial auto insurance pays for bodily injury and property damage for accidents where you are at fault. Secondly, this coverage also typically includes legal expenses if you’re sued. Finally, if you purchase comprehensive and collision coverage, the policy will cover vehicle theft, vandalism, and other losses and damages.
Depending upon how your policy’s structure, it can include liability insurance to cover your business’s legal costs if one of your employees gets into an accident, for instance.
Does commercial auto insurance cover your employees’ personal vehicles and your own?
Unfortunately, business auto insurance does not provide coverage for personal vehicles. Therefore, if you or your employees sometimes drive personal vehicles for business purposes, consider buying hired and non-owned auto insurance.
Hired and non-owned auto (HNOA) insurance provides liability coverage for vehicles your business uses but does not own. That includes:
- Employee-owned vehicles
- Vehicles rented by a business
What is the difference between commercial and personal auto insurance?
Commercial insurance policies are designed for commercial vehicles that cover a lot of ground. Therefore, these policies typically have higher coverage limits to account for the increased risk.
Personal auto insurance policies only cover claims related to personal use, including your commute and travel unrelated to work. Moreover, they have lower limits and usually cost less.
For example, if you’re involved in an accident while driving your personal vehicle for work, your insurance company might refuse your claim. For this reason, sole proprietors who own a vehicle used for work should consider commercial auto insurance or HNOA.
What coverage options should a commercial policy include?
At a minimum, your policy must meet state requirements. In addition, your policy should also be able to cover all costs associated with an accident. Otherwise, you could end up paying legal fees and other expenses out of pocket.
Talk with an agent to discover policy options that match your driving situation. For example, the following options cover different risks:
- Collision coverage, which covers physical damage to your own vehicle in an accident
- Comprehensive coverage, which covers vehicle theft and damage from vandalism, fire, and other causes
- Uninsured or underinsured motorist coverage, which covers damages incurred by another driver who is not adequately insured
Additionally, you can control the cost of your commercial auto policy by adjusting your deductible. A policy with a higher deductible will cost less. However, you’ll have to pay more before you can collect on a claim.