
Liability-only vs. Full Coverage Commercial Auto Insurance
Whether you deliver goods, ferry passengers or use motor vehicles for other means, you likely understand the importance of commercial auto insurance. These policies can offer critical financial protection for businesses across many sectors and can be tailored to suit your unique needs, circumstances and risk tolerance. Understanding your options, such as liability-only and full coverage policies, can be crucial.
What is Liability-only Insurance?
As its name suggests, these types of policies are relatively minimal in their coverage scope while at least often fulfilling legal requirements. Most states, including Colorado, mandate that all businesses using automobiles for commercial purposes must at least carry this type of coverage. Specifically, these policies may assist with the following:
- Third-party bodily injuries—If your company is at fault for an accident that harms other motorists or pedestrians, your coverage can assist with their medical bills and other losses.
- Third-party property damage—Your policy may also help with repair, rebuild and replacement costs arising from accidents for which your business is at fault.
What is Full Coverage?
Full coverage commercial auto insurance is a general term that may vary in its exact definition depending on your carrier and policy. Generally, this type of insurance encompasses greater and more versatile coverage than liability-only policies, often including the following components:
- Collision coverage, such as for your business’s repair or replacement costs should its vehicles be damaged in a crash
- Comprehensive coverage, which can render financial aid if your vehicles are damaged by noncollision incidents, such as fires, theft and natural disasters
- Uninsured/underinsured motorist coverage, including potential payouts to compensate for at-fault parties lacking sufficient liability insurance
We’re Here to Help
At Legacy Insurance, we’re dedicated to helping businesses in the Colorado Springs area understand and secure suitable commercial auto coverage. Contact us today to learn more about your options or compare personalized quotes.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
Categories: Blog, Commercial Auto Insurance