Commercial Auto Insurance

Commercial auto insurance is required for Delaware- and Maryland-based companies that own or use vehicles. Contact Wilgus Insurance in Salisbury, Maryland, Millsboro, Delmar and Seaford, Delaware, to learn more about this crucial business insurance.  

What Is Commercial Auto Insurance? 

Commercial auto insurance is a contract between an insurance company and a business that provides liability coverage. Commercial auto policies are tailored to meet the needs of the business and may include coverage to help repair or replace insured company vehicles. Your agent can help you evaluate your commercial auto options to get coverage that meets your organization’s needs.  

Who Is Insured Under a Commercial Auto Policy? 

A typical commercial auto insurance policy provides coverage for permissible drivers, which usually includes company employees. The exception is if your business borrows or rents vehicles, in which case you’ll need hired and non-owned auto insurance (HNOA) coverage.  

Talk with your agent to ensure you understand who is insured while behind the wheel of a company vehicle.  

How Does Commercial Auto Insurance Work? 

Your company’s commercial auto policy provides coverage for insured vehicles as stated in your policy declarations. Certain insurance policies are required for Delaware and Maryland companies using vehicles in the course of everyday business.  

Maryland businesses must carry at least the minimum liability insurance to help cover bodily injuries and property damage after an at-fault accident.  

Delaware businesses must carry personal injury protection (PIP) in addition to at least the minimum amount of liability insurance to help cover third-party injuries and property damage after an at-fault injury.  

• Personal injury protection (PIP) helps cover accident-related medical bills and certain death and disability benefits, up to the policy’s limits, for the driver and passengers regardless of who is at fault. This coverage is required in Delaware.  

If your company leases or finances vehicles, your lienholder requires that you purchase collision and comprehensive commercial auto insurance. They may also require gap coverage.  

• Collision insurance helps pay to repair or replace your company’s insured vehicle after it collides with another vehicle or object. 
• Comprehensive insurance helps cover damage to the insured vehicle after a noncollision-related accident or incident, such as a fire, weather event, theft or vandalism. 
• Gap coverage helps cover the financial gap between the total amount you owe your lienholder and your insurer’s settlement after an accident or incident, rendering the covered vehicle a total loss.  

Depending on your company’s exposures and risks, your agent may recommend that you also purchase the following coverages: 

• Uninsured/underinsured motorist coverage helps pay for accident-related injuries and damage to your company’s vehicle if the at-fault driver doesn’t have adequate liability coverage. 
• Medical payments (MedPay) helps cover medical expenses related to a car accident and can also be used to cover copays or deductibles for other types of coverage, such as PIP or health insurance following a covered car accident. MedPay is optional in Delaware and Maryland. 
• Hired and non-owned auto insurance (HNOA) helps provide coverage for rented, leased and personal vehicles used by the company.  

How to Get Commercial Auto Insurance 

Contact Wilgus Insurance today to get quotes for your company’s customized commercial auto insurance policy.