Commercial automobile insurance protects businesses owning an auto fleet against risks such as a motor own damage and any third party bodily injury and property damage liability that may arise from an accident. Businesses that use automobiles for commercial activities need this type of insurance coverage to ultimately protect their bottom line.
With increases in litigation costs and compensation, coupled with heavier traffic volumes and more road traffic accidents, it is vital that businesses are properly protected. And legally, there is potentially no limit to the costs involved with bodily injury – the compensation depends on the scale of the injury, not on the ability of the business or the individual to pay it. Without suitable protection this could pose a real and costly threat to any company's operations, irrespective of its size or stature.
Businesses with larger fleets will require skilled fleet risk management to provide proper protection to match their own business objectives.