Business and commercial auto insurance, What is the difference?
Business and commercial auto insurance sound like the same thing, but there are some important differences.
“A business auto insurance policy provides coverage for a company’s use of cars, trucks, vans, and other vehicles while carrying out its business. Coverage may include vehicles owned or leased by the company, hired by the company, or employee-owned vehicles used for business purposes. A BAP covers both liability and damage. A business automobile policy is also known as a business auto coverage form (BACF).” (Investopedia)
A commercial auto insurance policy refers to any vehicle used for the purposes of transporting a person or goods to a location, or for bring tools and equipment to and from a work site. “Commercial vehicles may be fleet vehicles, company cars, or other vehicles used for business. Vehicles that are designed to carry more than 15 passengers are also considered a commercial vehicle.” (Wikipedia)
So basically, the main difference is that a business auto insurance policy covers the vehicles a company uses while carrying out its business and commercial auto insurance policy covers specialized vehicles that perform specific tasks on the job. Specialized auto insurance for vehicles like cement trucks, tractor-trailers, delivery trucks,and company vehicles.
If you’re still unsure about the differences between commercial and business auto coverage’s, call us today at Suburban insurance agency and we can give you some information relevant to your business or visit us on the web.