Business owners have a lot on their plate to think about. It can range from procurement and deliveries to optimising production. With these worries at hand, it is cumbersome to manage the vehicles in use. These commercial vehicles are either being used for transportation of goods or passengers. With countless kilometres scaled each month, any breakdown or accident can directly have an impact on your business. To avoid such financial as well as legal implications, it is critical to have a motor insurance plan.
Are there any policies that insure commercial vehicles, you may ask. Yes, there are!
Commercial vehicle insurance is designed to protect against losses that might arise due to accidents or injuries by the vehicles used in the business. It also extends to cover any legal liabilities that might be encountered due to death or injury of any third person. Moreover, the damage to third party property as well as own damage can be covered using commercial vehicle insurance.
Now that we know what is meant by commercial vehicle insurance, let us look further at its coverage, inclusions, exclusions and more.
Coverage options under commercial motor insurance
When you buy commercial motor insurance, there are two options available – liability only and comprehensive policy. The comprehensive plan covers losses and damages to the policyholder along with third party property damages and injury. Liability-only insurance has a limited scope and only provides coverage for injury and damage to another person. It does not extend its cover towards the losses for the policyholder.
Inclusions for commercial motor policy
The common inclusions when you purchase vehicle insurance are as follows –
Damages caused in the following cases:
- Fires, explosions or lightning.
- Riots or breakout of a strike.
- Theft or burglary.
- Natural perils like floods, typhoons, hurricanes, storms, etc.
- Any form of human perils.
- Accidents.
In an accident where the insured commercial vehicle causes damage to a third-party vehicle or any bodily injury, these circumstances are also included as a part of a comprehensive insurance policy. Further, in case the owner or the driver meets with an accident, the policy insures the injuries too.
Exclusions under commercial vehicle insurance
Not all insurers have the same exclusions, but here is a list of standard exclusions under your commercial insurance policy –
- Any event of a claim that is specifically excluded in the insurance contract.
- Routine wear and tear of the spares.
- Electrical and mechanical failure.
- Deductible which is pre-defined as per the terms of the policy.
- Claims made if the vehicle is used beyond the geographical limits.
- Claims due to nuclear and radiation hazards.
When buying commercial vehicle insurance, keeping a check on the premiums is also essential. A car insurance calculator is a nifty tool that can be useful in shortlisting as well as finalising a suitable commercial motor insurance policy. Also, factors like the turnaround time of the insurance company, the claim process, the flexibility in coverage, along with additional coverage options, must be checked. It will help in easing the selection process.
To conclude, as crucial it is to have insurance for your business liabilities, it is equally important that you insure your vehicles too. After all, your operations rely on the smooth transport of goods and passengers.
