
Physical Damage Coverage: Is It Worth It for Your Fleet?
If you own or operate a business that ferries passengers, transports inventory, delivers goods or otherwise relies on motor vehicles, you likely understand the importance of commercial auto insurance. These policies are typically required by law, but beyond such mandates, your business might also need to retain enhanced coverage to fully safeguard its financial interests. Understanding physical damage coverage is crucial as an often optional but highly advisable component of commercial auto policies.
What Is Physical Damage Coverage?
In commercial auto insurance, physical damage coverage may refer to multiple aspects of your policy designed to help you manage repair costs, purchasing replacement vehicles and otherwise managing losses from physical damage to your fleet. Specifically, this term often refers to the following types of coverage:
- Collision coverage can help your business pay to repair or replace company cars, trucks, vans and other vehicles after a crash.
- Comprehensive coverage may offer financial aid for losses caused by theft, vandalism, fires, Natural disasters and incidents involving wildlife.
Why Is It Important?
Acquiring and maintaining a commercial auto policy that includes suitable physical damage coverage can benefit your business. Consider how sufficient coverage might enable the following:
- Financial security—Accidents involving your vehicles can have costly consequences and having to pay for unbudgeted repairs could have significant implications for your bottom line.
- Business continuity—If you rely on automobiles for business functions, having even a single part of your fleet sidelined could hinder your ability to meet deadlines and otherwise maintain operations.
- Compliance—If you rent your fleet or have purchased vehicles with the help of lenders, you may be formally obligated to carry physical damage coverage.
- Enhanced credibility—Some clients and prospects may feel more secure doing business with your company based on your level of insurance.
We’re Here to Help
If you’re seeking commercial auto insurance in the Haines City, FL, area, contact Cathy Boyd's 1st Class Insurance Services today.
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