Importance of Commercial Auto Insurance for Real Estate Businesses

For real estate businesses, it’s essential to understand the potential risks they may face and the insurance you need to cover those risks. One of the most important types of insurance you need is commercial auto insurance. Without proper coverage, your business can be exposed to costly losses if an accident or other incident occurs. Here, we will discuss commercial auto insurance, who needs it, and what it can cover for real estate professionals.

Businesses that Need Commercial Auto Insurance

Commercial auto insurance is mainly for businesses that own vehicles and uses them for business operations. It includes real estate businesses that use vehicles to transport their agents, employees, or clients. It also includes companies that use vehicles to transport goods, supplies, or other materials.

Commercial auto insurance is different from personal auto insurance. Personal auto insurance covers vehicles owned and operated by individuals, while commercial auto insurance covers vehicles owned and operated by businesses. As a real estate business owner, you are required to use your vehicle rather frequently, whether it is to look for prospective property or show clients around, so you must make sure that you have the right type of insurance to protect yourself and your business.

Learn About Commercial Auto Insurance Requirements in Your State

Every state has different requirements for commercial auto insurance, so it’s important to check your state’s specific needs. Generally, states require businesses to carry minimum liability insurance for their vehicles, which covers bodily injuries and damages caused to another person’s property. You may also take the optional collision and comprehensive coverages, which cover damage to your business’s vehicles from a wide range of covered perils, for further protection.

However, the minimum liability coverage limit required by your state may not be enough to cover all of your business’s unique needs. That’s why you should work with a trusted insurance provider to ensure you have the right coverage for your business.

Types of Commercial Auto Insurance Coverages Needed for Real Estate Businesses

Commercial auto insurance can provide various coverage for real estate businesses, including liability, collision, and comprehensive coverage.

  • Liability coverage can help cover medical expenses and property damage if you or one of your employees causes an accident. It may also cover your accident-related legal costs.
  • Collision coverage can help cover the cost of repairing or replacing your vehicle if it gets damaged in an accident.
  • Comprehensive coverage can help cover the cost of repairing or replacing a vehicle damaged by an element other than an accident, such as theft or vandalism.
  • Uninsured motorist coverage can help pay for your injuries and vehicle damage if the at-fault driver is uninsured.

In addition, commercial auto insurance can provide coverage for rental cars, hired vehicles, and leased vehicles. Commercial auto insurance can also provide coverage for towing and roadside assistance if a vehicle breaks down.

Additional Coverage in Your Personal Auto Insurance to Include Business Operations

Finally, it’s essential to understand that personal vehicles used for business purposes may need additional coverage. If you or one of your employees is using your vehicle for business purposes, you may need to add a business use endorsement, hired and non-owned auto insurance, to your personal auto insurance policy. This will ensure that your personal auto insurance policy will provide the appropriate coverage for business purposes.

Wrapping Up

Commercial auto insurance is an essential type of insurance for real estate businesses. It can help cover your personal and third-party medical expenses, property damage, and other costs if an accident or other incident occurs. To ensure that you are fully covered, you must know the commercial auto insurance requirements in your state and make sure you have the right coverage for your business. Contact us at ISU Wissink Agency today for more information on commercial auto insurance coverage. We can help you find the right commercial auto insurance for your business.