Video Transcript

My name is Jared Morgan with Bradshaw and Will. I'm an insurance agent and we're going to be discussing what commercial auto covers, the benefits of it and why it's needed. Commercial auto insurance is auto insurance that covers vehicles owned by a business. If your business owns a vehicle, then you need commercial auto insurance. Now what does it cover? It covers your liability if you are negligent in an accident. So let's say one of your employees is driving one of your commercially owned vehicles and they cause a wreck that kills somebody. In that situation, if they're negligent, your business will be sued in all likelihood if there's a lawsuit or wrongful death and that's where commercial liability coverage comes into place. Now if you have a fleet of vehicles or if you have several vehicles, it's very important to properly insure them and in most cases you're going to have liability insurance and you're also going to have, you're going to have insurance that covers damage to your vehicles which is called comprehensive and collision, whether the comprehensive covers things like hail or backing into a tree or hitting a deer or an animal and collision covers where you collide with another vehicle. Now, that's what it covers, there's some other parts to that. If you're a business owner and one of your employees gets sued or one of your employees causes a wreck and causes you to get sued for their activity, then you're going to want to have liability coverage in place. That protects you. It funds your defense. It pays for any judgments against you and when you consider an exposure that a business has that can cause a catastrophic loss, a really bad auto accident is probably one of the most likely losses a business can have that can hit into the catastrophic range, north of a million dollars or severe loss. Even if it's under a million dollars, it's still a severe loss for most businesses. So when you talk about benefits of commercial auto insurance you're talking about protection for your assets, protection for your income stream as a business, not having to pay expensive defense costs if your employees or if you get into a wreck and also taking care of those liability judgments that are made against you. My name is Jared Morgan. We've been discussing the benefits of commercial auto insurance.