Are you shopping for affordable commercial van insurance or commercial auto insurance in California, regardless if you reside in Los Angeles CA, or Ontario CA?
If so, continue reading on to learn exactly why you need commercial auto insurance, it’s policy structure and insurance coverage schedule.
A commercial auto policy has many layers to its policy structure, and offers different coverage forms designed for different types of commercial automobile exposures.
Coverage Insurance Forms
A commercial van insurance policy may include one or more of the following forms; Business Auto Coverage Form, Garage Coverage Form, and Truckers Coverage Form.
Before we dissect the actual commercial auto policy to help you find savings.
Also, to ensure you are being fully protected, let’s examine the introduction of commercial auto insurance in California starting with business auto insurance and examining the interchangeable use of commercial auto insurance and commercial van insurance.
The Beginning – Commercial Auto Insurance
If you are a business owner, than you understand the concept of business transportation, since every business operates at least one vehicle to operate their deliveries, performing essential tasks away from their office settings, and to transport employees or clients.
Fortunately for the local business owner, these coverages required on a commercial auto policy are very similar to that of their personal auto insurance policy.
In some cases, the personal auto coverage can also be purchased as part of a commercial package policy, which can lower the cost of your insurance premium.
The business auto insurance policy is a general purpose policy used to write auto insurance for different types of business vehicle risks, such as company cars, vans, trucks and other type of vehicles depending on the type of the business operation.
In addition to those that own and supply company cars to employees, those that use vans and trucks to haul their own goods, those that transport passengers, and those that lease vehicles to others.
As a business owner you may have automobile exposures arising out of owned, leased, rented, or borrowed vehicles, which at one time, could be insured under a private passenger auto insurance policy for most risks.
The basic policy only provided insurance coverage for autos which were specifically listed and scheduled on the insurance policy, but coverage for hired cars and non owned autos could be added by an endorsement or policy change request.
Sometime later, the comprehensive auto liability coverage was introduced, and became increasing popular among businesses operating with large and continually changing fleets.
Your commercial auto insurance coverage part will consist of a declarations form, commercial auto insurance coverage form, any endorsements that may apply, special auto insurance coverage forms.
In addition, under a business auto insurance policy, different forms are available for special types of risks.
These risks include garage coverage form and truckers coverage form. The garage coverage insurance form is used to insure garage risks, such as service and repair shops, which have a premises operations exposure and have temporary possession of customers’ cars.
The other form labeled truckers coverage insurance form, is utilized to insure vehicles for trucking businesses that haul goods for others, and which frequently exchange trailers with other businesses.
The business auto declarations are somewhat lengthy and are divided into six policy sections.
The policy declarations will identify the named insured, the policy number and the form of business (whether it’s a corporation or sole owner, etc.), the mailing address of the named insured, the identification of the insurance company and the producer information, with the policy term period.
Listed Covered Vehicles
The declarations will also list the vehicles insured and the insurance coverages provided, along with the rates, policy premiums, deductibles and other information typically found on an insurance policy declaration page.
When numerous vehicles are insured on the same policy, separate schedules of each vehicle will be attached. The information is grouped in the following methods:
- Item One– General information about the risk being insured.
- Item Two — Coverages, coverage symbols, limits of liability and the premium for each coverage.
- Item Three — Owned autos are scheduled in this area.
- Item Four — Hired or borrowed autos are scheduled in this area.
- Item Five — Non ownership liability is scheduled in this area.
- Item Six — Gross receipts or mileage for liability coverage for public auto or leasing rental concerns are scheduled in this area.
Various sections exist on the declarations and will be completed as appropriated for the actual coverage’s being written and described on a commercial coverage policy.
If a particular coverage does not apply to the policy, then that section will be left intentionally blank.
- Avon Sales
- Awning Installation
- Repair Building Equipment Installation
- Backhoe Services
Regardless of what city you live in within the state of California, shopping for insurance van commercial vehicle can be a daunting task.
Even if you are familiar with the process of what will be covered, what coverage’s you actually need, and what to expect once you buy, you still may have questions.
The typical insuring agreement you will find on your policy is liability insurance coverage. The carrier agrees to pay sums that you as the insured, becomes legally obligated to pay damages because of bodily injury or property damage.
The injury or damage must be a result from an accident and arise out of an insured automobile exposure.
Remember, an automobile can do a great deal of harm and property damage to others. These are the exposures which can jeopardize the financial strength and management focus of any business.
The coverage also will apply to covered pollution cost or expense. However, this is an extremely limited type of coverage.
As you will see when reviewing your policy definitions on your declaration page, this will only apply to a demand or order to clean up, remove or neutralize pollution caused by the escape of substances being transported, stored, treated or processed in or upon a covered auto.
As an example, if you are transporting a drum of pesticide in a pickup truck and the pesticide is spilled o the highway, the cost of clean up would not be covered.
Business auto liability coverage is usually written with a single limit of liability and up to that limit, the carrier agrees to pay you as the insured, legal obligations for damages caused by a covered accident resulting a bodily injury or property damage.
This is to pay your cost for legal obligations for damages caused by a covered accident resulting in bodily injury or property damage.
The pay for legal obligations for covered pollution cost resulting from a covered accident, and to defend, investigate, and settle suits and claims would all be included.
Duty to Defend
The duty to defend and settle ends when the limit of coverage has been exhausted by payment of judgments or settlements.
There is no duty to provide a defense for any bodily injury or property damage not covered by the coverage form.
The final paragraph in this section spells out the carriers right and duty to defend suits and to investigate and settle claims.
However, there is no duty to defend suits or claims for damages that are not covered by the policy form, or to defend after the limit of liability has been exhausted by the payment of claims.
Auto Insurance Quotes Comparison
If you are a business owner, you understand the importance of being proactive and protecting your assets. Remember, cheap insurance doesn’t necessarily mean protection and security, so make sure to understand what your commercial van comparison entails before purchasing.
If you need help comparing small business van insurance or cheapest auto insurance in California, call Target Up Insurance at 800-962-0085.
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