Commercial auto insurance (vehicle insurance) in New York

Commercial Auto Insurance

Commercial auto insurance is a specialized type of policy that covers vehicles used for business use. It offers protection against financial losses arising from roadway accidents, liability, and property damage. According to the Insurance Information Institute, nearly every state in the U.S. requires a business to have liability coverage on any vehicles used commercially. Failure to do this could result in severe fines or possibly even suspension of a business’s operations.

The endorsements actually are optional additions to the standard commercial vehicle insurance policy that enable businesses to tailor their coverage to meet specific business needs, such as:

extend coverage to rented or leased vehicles;
protect against liability when employees use their personal vehicles for work;
increase the limits of liability.

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Who needs commercial auto insurance?

Some industries are more prone to these and, therefore, require very reliable commercial vehicle coverage:

landscapers, construction workers, and other contractors who transport tools and equipment to job sites;
businesses that deliver packages, from couriers to retailers;
catering companies, food trucks, and restaurants;
taxis, limousines, shuttle services, and other passenger transport companies;
organizations that are using buses or vans to transport volunteers or clients.
companies sending products back and forth to suppliers or customers.

Commercial auto insurance can cover a wide range of vehicles, including:

cars,
vans
pick-up trucks,
box trucks,
food trucks,
refrigerated trucks,
dump trucks (may require additional policies)
SUVs,

Note: There may be different commercial motor insurance needs regarding semi-trucks, dump trucks, and other specialty vehicles; these commonly require individual policies.

What does commercial vehicle insurance cover?

Auto liability coverage

Liability coverage is required in every state except New Hampshire and forms the basis of commercial motor insurance policies. It includes:

Bodily Injury Liability: Covers medical expenses, lost wages, and legal costs if your business vehicle causes injury to someone else.
Property Damage Liability: Pays for repairs or replacement of another person’s vehicle or property damaged in an accident.

Collision coverage

Collision commercial vehicle insurance pays for damage to your vehicle after an accident, regardless of fault. This includes crashes with other vehicles, objects, or rollovers. Without it, the business bears the full price of repairs, which average $4,000 to $5,000 per vehicle repair.

Comprehensive coverage

Comprehensive coverage pays for non-collision-related damages, such as:

theft,
vandalism,
fires,
floods and other weather events.

This coverage ensures your vehicle is protected from unexpected incidents, such as damage caused by hail or a fire at your business premises.

Uninsured/underinsured motorist coverage

According to the Insurance Information Institute (III), 1 in 8 drivers in the U.S. is uninsured. This coverage protects against damages caused by drivers who lack sufficient insurance, covering:

Medical expenses for injured employees.
Repairs for the business vehicle.

Medical payments or Personal Injury Protection (PIP)

MedPay or PIP covers medical expenses and lost wages for the driver and passengers, regardless of fault. This may include:

Emergency medical care.
Rehabilitation costs.
Compensation for missed work.

In no-fault states, PIP is often a required component of commercial motor insurance policies.

Rental reimbursement coverage

If a commercial vehicle is in the shop for repairs, rental reimbursement coverage pays for a temporary replacement.

Downtime due to accidents can cost businesses $760 per day, according to industry research.
Rental reimbursement minimizes operational disruptions, helping businesses continue serving clients.

Choose A&Y Royal Insurance as a partner

Finding the right insurance for your business vehicle doesn’t have to be complicated. Because of this, A&Y Royal Insurance is set to make this process as simple as possible. We offer customized commercial vehicle insurance policies to guarantee flexibility, reliable coverage, and professional support whenever you need it in Brooklyn and within the New York City Metropolitan Area.

Call us at 718 375 9000 or fill out the online form to receive a quote.