What You Need to Know About Your Commercial Auto Insurance Exclusions


If you own a fleet or any other type of commercial vehicles, then you need the appropriate auto insurance to cover it. While basic commercial insurance policies do cover a lot, there are also many situations they exclude. You should be aware of these exclusions, so you can get necessary additional coverage and avoid any situations in which your policy won’t take care of the damages.

Expected or Intended Injury

Auto insurance is there to cover accidents, but intentional accidents often don’t receive any form of coverage. If you or one of your drivers rear-ends another car with the intention of harming the driver, that is an intended injury. If that injured driver went on to sue you for the damages, your insurance company likely wouldn’t cover the claim since the accident happened on purpose.

Potentially Non-Covered Drivers

Every policy has its own requirements for who counts as an insured driver. Some policies only cover specific users, while others are broader and cover all vehicles included in the policy. Review your commercial auto insurance to make sure your vehicles have the right amount of protection for whoever regularly gets behind the wheel.

Workers’ Compensation

Workers’ compensation covers any injuries sustained during work-related activities, including driving. If one of your employees suffers injuries that your workers’ compensation insurance covers, your commercial auto insurance will not handle it. The same exclusion applies to benefits paid by disability policies and government programs.

Racing and Speed Contests

Insurance companies tend to look down on risky behaviors such as racing. If your vehicle ends up in an accident due to racing or speeding, your commercial insurance coverage won’t cover it, regardless of who is insured and who isn’t. Likewise, you won’t receive any payout if the vehicle is involved in practicing or preparing for any organized races.

Fellow Employee Injuries

Insurance policies have exclusions for any employee injuries sustained by another employee while on the job.

Care, Custody, or Control

Both rental vehicles in your care and property your vehicles transport do not receive commercial auto insurance coverage by default. You can, however, purchase additional types of coverage to insure rental vehicles and property you are transporting.

Commercial auto insurance helps cover a lot of incidents, but you need to beware of exclusions like those we’ve mentioned. Being clear about what your policy covers and what it doesn’t can save you a lot of money in the event of an accident. Review your insurance policy and seek the appropriate additional coverage your business needs today.

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Sources:

https://www.thebalancesmb.com/auto-liability-what-s-not-covered-462419
https://www.thebalancesmb.com/who-s-covered-under-my-commercial-auto-policy-462412
https://www.irmi.com/articles/expert-commentary/distinguishing-between-the-exclusions