Why Commercial Auto Liability Insurance Is Important

Any business that owns or operates commercial vehicles needs commercial auto insurance. At no point is the need for this coverage more apparent than when the business’s driver is at fault for an accident that harms others. Under most states’ laws, the at-fault driver is the party that must pay for the injuries or property damage or all those involved, including impacted third parties. 

It is at this point that the policy’s liability insurance will be instrumental in helping pay for the losses that you might cause to others. After all, at-fault accidents often put substantial strain on the at-fault party’s wallets, which in this case might be your business’s. Liability insurance will make certain that you can respond to these issues, and the legal challenges that often arise from them. 

What to Do When an Accident Occurs 
At the time of a commercial vehicle accident, it is imperative to protect your own stability. After all, the accident is going to cost the business money; you want to make the financial blow as little as possible through leveraging your commercial auto insurance policy. 

Unfortunately, when your business is the party at-fault for a commercial vehicle accident, you are often at a higher risk of having to pay a lot of money for the property damage or injuries of others. Affected parties are more likely to take steps to file a claim with commercial auto insurance policies for larger losses. That is just one of the reasons why you need adequate liability insurance within your coverage. 

At the time of an accident, document all details of the crash, and maintain this information. Work with the police to determine how fault will be determined and collect a requisite police report to help support any claims you make. Then, contact your auto insurer. The insurer will work directly with third parties should they choose to pursue liability claims with you. 

When They Do Not Settle  
Sometimes, you might be sued by another party when you are at fault for an accident. They might demand substantial compensation from both your business and your insurer. If there is any conflict over the validity of their claim, then the resulting discussion might proceed to court. 

At this point, your own commercial auto insurer will continue to assist you. They will usually provide you with coverage for any legal costs that might arise from liability lawsuits, and in many cases they will provide a lawyer to represent you (and the insurance company) in coverage. Keep in mind, depending on the settlement ordered by the judge, your auto insurer might or might not pay 100% of the costs. However, they will assist you in all possible ways. 

Any time you are facing a claim like this, work with your agent. Discuss what your options are. Learn how much commercial auto insurance protection you have for these risks.