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If you use your sedan for commercial purposes, speak to a professional about state requirements and optional coverages that benefit you. You can choose coverage for your vehicle based on your unique needs. 

Do I Need a Business Auto Policy?

How do you use your vehicle? This indicates the types of coverage you need. A business policy will provide the level of liability protection that even a small business needs to cover the potential damages in a serious accident. A personal auto policy is unlikely to provide coverage if the vehicle in question is used primarily in business. It will not provide coverage for any vehicle owned by a business. The personal auto policy, may not have enough coverage to protect your business.

A personal auto policy alone, will not defend or pay damages on behalf of your business. For a very serious accident or one with a number of injured people, your personal auto policy may not be enough to cover the damages. In that event, the injured parties would likely sue to collect damages from your business. Whether you’re dropping off or picking up customers at the airport or transporting partygoers around town, you need comprehensive coverage that travels with you. Be equipped with a customized solution that protects you in the event of a liability loss for which you are responsible as well as help pay for the repairs to your vehicle(s) should damage occur. 

Commercial transportation insurance coverages to consider include:

  • Commercial Auto Liability (Bodily Injury & Property Damage Liability)
  • Physical Damage (Comprehensive & Collision)
  • Rental & Towing
  • Accessories Coverage (GPS navigation equipment)

Physical Damage 

The three types of physical damage coverage for motor vehicles are collision, comprehensive and specified perils. The amount of coverage on an auto physical damage or theft claim depends on the market value, known as Actual Cash Value (ACV), of the vehicle at the time of the loss. The ACV or the cost to repair or replace the vehicle will be paid. 

Liability Coverage

Liability covers all damages the business is legally obligated to pay due to bodily injury or property damage caused by a covered vehicle, up to the policy limits. When there is an auto liability lawsuit against the insured business, where the loss is covered by the policy, the insurer is obligated to defend the business or settle the lawsuit. The insurer’s duty to defend or settle ends when the insurance policy limits are exhausted. 

About American Risk Management, Inc.

American Risk Management, Inc. (ARM), along with its predecessor entities, has provided public auto business owners with coverage for their vehicles and operations since 1938. We provide coverage to taxis, sedans, limousines, ride-sharing vehicles, sightseeing tours, courtesy shuttles, school shuttles, last-mile delivery, and couriers across the Washington, D.C. metro area. Our expertise and experience in the commercial transportation industry allow us to provide our clients solutions that fit their unique risk profiles. To learn more about what we can offer you, call us today at (202) 547-8700.