Commercial Auto Insurance for Cannabis Businesses
What is Commercial Auto Insurance?
Commercial auto insurance, also known as business auto insurance, is a type of insurance for commercial vehicles on the road.
If you are using a vehicle for work, regardless of your operation, you need to have a commercial auto insurance policy in place, not a personal auto policy. A commercial auto policy typically has $1,000,000 combined single limit of liability insurance coverage and optional full coverage, comprehensive and collision for each company owned vehicle.
A Hired and Non-Owned auto policy is another form of commercial auto insurance that has a $1,000,000 combined single limit of liability insurance coverage for employees driving their own personal vehicles for work purposes. It’s not suited for companies that are distributing cannabis. Any company that has a specific route or has drivers regularly driving as part of their routine duties would need to rely on the commercial auto policy however hired and non-owned auto policies are available for cannabis delivery companies delivering to consumers such as a retail location with a delivery exposure.
Commercial auto insurance can cover both comprehensive and collision, covering damages to your work vehicles, regardless of fault. The commercial auto policy can also cover injuries and damages to third parties, if you are in an accident with an uninsured motorist.
What’s Included in Commercial Auto Insurance?
Commercial auto insurance policies can include the following coverages for cannabis businesses:
- Auto liability
- Physical damage coverage
- Medical payments
- Uninsured and under insured motorist coverage
- Rental reimbursement
- Roadside assistance
- Collision coverage
If your business is sued due to an automobile-related incident, fees that include medical expenses, punitive damages, and attorney rates can quickly reach astronomical heights. By investing in commercial auto insurance, you can mitigate most if not all damages that may occur if you get into an accident with a company vehicle. You should also consider increasing your limits rather than keeping them at the statutory $1,000,000 combined single liability limit. You can do this by purchasing an excess liability policy. Excess liability policies begin at $1,000,000 in liability and can increase accordingly to meet the needs of your business.
The Difference Between Personal and Commercial Auto Insurance
Many business owners who use their personal vehicles for business purposes often believe their personal auto insurance provides adequate coverage should an accident occur.
While personal auto insurance will cover damages to your vehicle and perhaps medical expenses, it does not provide coverage during a work-related trip unless the business owner purchases hired and non-owned auto insurance. The personal auto insurance company will likely sue the business owner for the damages. If the business owner doesn’t have a hired and non-owned auto insurance policy in place or a commercial auto insurance policy covering that specific vehicle, then the business will have to pay the entirety of the lawsuit. A commercial auto policy will fill that gap in coverage.
Commercial auto insurance, in combination with other insurance policies such as liability, property, and workers compensation insurance, is specifically tailored to protect your business, not just the vehicle itself. Higher limits are also available.
Get a Commercial Auto Insurance Quote
To learn more about commercial auto and hired and non-owned auto, reach out to us today.