Many of Illinois' 1.2 million small businesses require commercial auto insurance for work vehicles. Personal auto policies typically do not cover vehicles used for business purposes because they are more liable than personal vehicles.
In 2018, the Illinois Department of Transportation (IDOT) reported over 319,000 motor vehicle crashes, with over 21% resulting in non-fatal injuries. Such incidents frequently result in costly lawsuits and financial hardships that are difficult to overcome in the absence of adequate insurance.
Over 700,000 small business owners in the United States rely on us to protect their commercial vehicles. Each receives a policy tailored to their specific needs, whether they own a single delivery van in Springfield or several catering trucks in Chicago.
All commercial auto policies in Illinois must have a minimum liability limit of $25,000 per person and $50,000 per accident for bodily injury, and $20,000 for property damage (i.e., 25/50/20). Some policies are required to have higher limits based on the vehicle types listed on them.
Uninsured motorist (UM) bodily injury and underinsured motorist (UIM) coverages are also required. These protect you if you are injured in a car accident caused by someone who does not have insurance or does not have enough insurance to cover your and your passengers' injuries.
In addition to what is required by Illinois state law, selecting limits that are best for your business is critical. Inadequate protection for your level of risk could leave you liable for financial debts you did not incur.
What does commercial auto insurance cover?
Commercial auto insurance covers vehicles used for business purposes such as:
Since commercial vehicles require more protection and liability policies in the event of an accident, commercial auto policies typically have higher coverage limits than personal policies.
Commercial auto insurance covers the following vehicles:
Knowing the different types of insurance and their coverages is important in getting the right policy for you if you want to cover your bases and get your commercial vehicles insured. Here are some of the most common types of car insurance, how they work, and what they cover:
Legal fees and other costs are covered by commercial auto insurance if a company vehicle is involved in an accident. In Illinois, it is necessary for all commercial vehicles. However, people in Illinois continue to suffer work-related injuries while not having adequate insurance from their employers.
Here are recent figures on vehicle accidents and commercial auto insurance in New York.
Six limits are specified in a standard business insurance policy's declaration. These are the general aggregate limit, the products-completed operations aggregate limit, the personal and advertising injury limit, the limit for causing damage to real estate that has been rented to you, and the limit of the medical cost.
A commercial auto coverage covers an entire firm, whereas a personal vehicle policy often only protects one person driving their automobile. This can involve several drivers, cars, trucks, and staff members with a bad driving history.
Physical damage and motor liability coverage are both included in the form of business auto insurance. So-called "broadening endorsements," a coverage improvement that can be added to an insurance contract, are another way to add other types of coverage.
Reliable and comprehensive coverage for commercial auto insurance for business vehicles remains competitive in small and large enterprises. However, finding the right commercial auto policy for your business vehicle with the right insurance company can make a big difference.
To learn more about commercial auto insurance policies for your business in Illinois, read through our blogs at Assured Standard and grasp what smart long-term business solutions could look like for you.