Importance of Commercial Auto Insurance in New Jersey
Importance of Commercial Auto Insurance in New Jersey
People who live in New Jersey will have no shortage in the number of choices available to them for buying commercial insurance for their company vehicles. This commercial insurance is another type of coverage offered for very specific types of activities related to an automobiles usage. Most business owners will likely have already purchased auto insurance policies for their personal vehicles. This article will provide readers in New Jersey the information on commercial insurance and what this unique type of commercial auto insurance NJ coverage provides.
Is there a difference between regular and commercial insurance?
Generally speaking, commercial insurance provides coverage for businesses in order to protect them against financial losing out while carrying out the company's normal business activities. As an example, a landscaping company might buy commercial insurance to protect themselves in case a clients property becomes damaged while the lawn is being mowed. Mistakes can happen during the course of providing services or selling products and many businesses will buy an insurance policy to protect themselves from paying large cash settlements if something should happen. If a company has a vehicle that is used for regular business activities, they can buy commercial insurance. Many businesses deliver products either by industrial truck or car or an automobile may be used for some other reason in the course of business and they will need to carry commercial auto insurance. One of the biggest differences is that a commercial auto policy will be very specific in terms of what will be covered because the vehicle is always going to be used for a specifically defined purpose. For instance, if a company delivers products with their vehicles, they will need to carry coverage for property damage as well as coverage for medical expenses for any drivers. Any company that transports other people with their vehicles will need to carry much higher coverage for personal injury in order to cover any potential injury a client might experience while in the company vehicle. If a company carried only regular consumer auto insurance, yet they were transporting people, if any of their passengers were injured in the vehicle they might not be covered due to the fact that a regular auto policy is not intended for that type of use.
Unique coverage and commercial auto insurance NJ
The laws that govern insurance and the specific circumstances for when they pay out will differ between states. In the state of New Jersey, there will be types of coverage that might not be found in some other states. For example, New Jersey offers under insured motorist coverage which can be part of either commercial or consumer insurance policies. If a motorist has liability coverage and they hit another car, but cause damage exceeding the limits of their policy, an under insured motorist policy can help the injured party pay the difference. For commercial vehicles which are typically on the road a lot, this can be especially important coverage.
Businesses need to protect themselves from unplanned situations which could potentially cost them a fortune in legal settlements or other costs. Having commercial insurance is an important way of ensuring that protection and companies which have a fleet or a single vehicle will find commercial auto insurance NJ essential. Laws will vary from one area to the next regarding the kind of coverage that is necessary and having a policy specifically tailored to the needs of a company is crucial when considering liability as well as cost.
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