As a business owner in New York, it’s important to understand the different types of commercial auto insurance coverage available to protect your company and its vehicles. Commercial auto insurance is designed to provide coverage for vehicles used for business purposes, such as transportation of goods or employees. Without the right coverage, your business could be held liable for damages or injuries sustained in an accident, leading to significant financial losses. In this article, we’ll explore the different types of commercial auto insurance coverage available in New York and how they can protect your business.
- Commercial auto insurance minimum requirements in New York
- What is commercial auto insurance?
- Liability coverage
- Physical damage coverage
- Medical payments coverage
- Personal injury protection (PIP)
- Additional coverage options
Commercial auto insurance minimum requirements in New York
Commercial auto insurance is required for any vehicle that is used for business purposes in New York State. This type of insurance provides coverage for accidents, injuries, and property damage that may occur during the course of business activities.
In New York State, commercial auto insurance policies must meet certain minimum requirements. These requirements include:
Liability coverage:
All commercial auto insurance policies must provide liability coverage, which pays for damages and injuries caused to other people in an accident that the insured is responsible for. The minimum liability coverage limits for commercial auto insurance in New York State are:
- $25,000 for bodily injury or death per person
- $50,000 for bodily injury or death per accident
- $10,000 for property damage per accident
No-fault coverage:
New York State also requires commercial auto insurance policies to include no-fault coverage, which pays for medical expenses and lost wages for the insured and their passengers, regardless of who is at fault for an accident. The minimum no-fault coverage limits for commercial auto insurance in New York State are:
- $50,000 for medical expenses per person
- $2,000 per month for lost wages for up to three years
Uninsured/Underinsured motorist coverage:
Commercial auto insurance policies in New York State must also include uninsured/underinsured motorist coverage, which provides coverage for damages and injuries caused by a driver who is not insured or does not have enough insurance to cover the damages. The minimum uninsured/underinsured motorist coverage limits for commercial auto insurance in New York State are:
- $25,000 for bodily injury or death per person
- $50,000 for bodily injury or death per accident
It’s important to note that these are only the minimum requirements for commercial auto insurance in New York State. Business owners may want to consider purchasing additional coverage to protect their assets and ensure that they are adequately covered in the event of an accident. When businesses in New York buy commercial auto insurance, consider our recommendations for the top providers in New York.
What is commercial auto insurance?
Commercial auto insurance is a type of insurance policy designed specifically for vehicles used for business purposes. Whether you’re a small business owner with one delivery van or a large corporation with a fleet of trucks, having the right commercial auto insurance coverage is essential to protect your business from financial losses in case of an accident.
In New York, businesses are required to carry a minimum amount of liability insurance coverage, but there are also additional types of coverage that can provide added protection. Understanding the types of coverage available and how they work can help you choose the right policy for your business.
Liability coverage
Liability coverage is the most basic type of commercial auto insurance coverage and is required by law in New York. It provides protection for damages and injuries that your business may be held responsible for in an accident involving one of your vehicles.
Bodily injury liability coverage pays for medical expenses, lost wages, and other costs associated with injuries sustained by others in an accident that you or one of your employees caused. Property damage liability coverage pays for repairs or replacement costs for property that is damaged in an accident caused by you or one of your employees.
In addition to the required minimum coverage, businesses can also choose to purchase uninsured/underinsured motorist coverage, which provides protection in case you or one of your employees is involved in an accident with an uninsured or underinsured driver.
Physical damage coverage
Physical damage coverage is another type of commercial auto insurance coverage that provides protection for damage to your own vehicles. It’s not required by law, but it’s important for businesses that own or lease their vehicles.
Collision coverage pays for repairs or replacement costs for your vehicle if it’s damaged in an accident, regardless of who is at fault. Comprehensive coverage pays for damage to your vehicle that is not caused by an accident, such as theft, vandalism, or weather-related damage. Specified perils coverage is a more limited form of comprehensive coverage that only covers damage caused by specific events, such as fire or theft.
Medical payments coverage
Medical payments coverage is a type of insurance that provides coverage for medical expenses incurred by you or your passengers in case of an accident. It’s not required by law in New York, but it can provide added protection for your employees and their families.
Medical payments coverage can pay for medical expenses, such as hospitalization, surgery, and doctor’s visits, as well as rehabilitation costs and funeral expenses. It can also provide coverage for lost wages if you or your employees are unable to work due to injuries sustained in an accident.
Personal injury protection (PIP)
Personal injury protection (PIP) is a type of insurance that provides broader coverage than medical payments coverage. It’s required by law in New York and provides coverage for medical expenses, lost wages, and other costs associated with injuries sustained by you or your passengers in an accident, regardless of who is at fault.
PIP coverage can also provide coverage for non-medical expenses, such as childcare or household services, if you or your employees are unable to perform these duties due to injuries sustained in an accident.
Additional coverage options
In addition to the types of coverage outlined above, there are other options that businesses can consider to further protect their vehicles and employees:
Hired and non-owned auto coverage
Hired and non-owned auto coverage provides protection for vehicles that are not owned by your business but are used for business purposes. This can include rental cars, employee-owned vehicles used for business purposes, and vehicles owned by vendors or contractors used to perform work on your behalf.
Umbrella insurance
Umbrella insurance provides additional liability coverage beyond the limits of your primary commercial auto insurance policy. This can be a cost-effective way to provide added protection against catastrophic losses in case of a major accident.
Cargo insurance
Cargo insurance provides protection for goods or products that are being transported in your vehicles. This can include coverage for damage, theft, or loss of goods during transit.
Conclusion
Commercial auto insurance is a necessary expense for any business that uses vehicles for business purposes. Understanding the different types of coverage available in New York can help you choose the right policy to protect your business and its assets. By carrying the right insurance coverage, you can have peace of mind knowing that your business is protected in case of an accident or other unexpected event.
Whether you need liability coverage to protect against damages or injuries caused by your vehicles, physical damage coverage to protect your vehicles from damage, or medical payments coverage to protect your employees, there are a range of coverage options available to meet your business’s needs. By working with an experienced insurance agent and carefully evaluating your risks and coverage needs, you can find the right policy to protect your business and its assets.
