Commercial Auto (Physical Damage Only)

Commercial Auto
Physical Damage Only

What is Commercial Automobile Physical Damage Insurance?

Commercial Automobile Physical Damage Insurance is a type of coverage within Commercial Auto insurance that specifically addresses the physical damage to the vehicles owned or used by a business. This coverage helps protect against financial losses resulting from damage to the business's vehicles caused by various perils. It is different from liability coverage, which covers injuries or property damage the business may be responsible for in an accident.

What are the coverages included in a Commercial Auto Physical Damage policy?

Key features of Commercial Automobile Physical Damage insurance include::

  • Collision Coverage: This component covers damage to the business's vehicles resulting from collisions with other vehicles or objects, regardless of who is at fault in the accident.
  • Comprehensive Coverage: Also known as "other than collision" coverage, this protects against non-collision events such as theft, vandalism, fire, floods, and other natural disasters.
  • Specified Perils Coverage: Some policies may offer coverage for specific perils that are named in the policy. This could include certain risks like hail damage or explosions.
  • Deductibles: Policyholders typically choose a deductible amount, which is the out-of-pocket expense the business must pay before the insurance coverage applies. Higher deductibles often result in lower premium costs.
  • Agreed Value or Actual Cash Value: The insurance policy may pay either the agreed-upon value (agreed value) or the vehicle's depreciated value at the time of the loss (actual cash value).
  • New Vehicle Replacement: Some policies may offer coverage for the replacement cost of a new vehicle if the insured vehicle is declared a total loss shortly after purchase.

Does your business need Commercial Auto Physical Damage coverage?

Commercial Automobile Physical Damage Insurance is essential for businesses that own or use vehicles for their operations, as it helps protect the investment in the vehicles and ensures that the business can recover financially from covered physical damages. It's important for businesses to carefully review the terms and conditions of the policy, including the covered perils, deductibles, and coverage limits, to ensure they have adequate protection for their commercial vehicles.

Contact an insurance agent for more information

Talk to an insurance agent for more information on selecting the right Commercial Auto policy for your business. Contact us, and we can provide you with an insurance agent in your area.

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