Commercial auto insurance provides coverage for a wide variety of incidents, but it can’t cover everything. There are different types of coverages to purchase for work vehicles and it’s important to understand what your policy covers. But does it cover theft?
A typical commercial auto insurance policy does cover theft beneath its comprehensive coverage. Commercial auto insurance can include:
- Comprehensive Coverage: This coverage provides compensation for damages that occur due to incidents such as theft, vandalism, wind and more. This does not include collision damages.
- Collision Coverage: This coverage provides compensation for damages that occur due to a collision with another vehicle or object.
- Bodily Injury Liability: Bodily injury liability is required by most states and provides medical compensation for the other driver and their passengers if you cause an accident.
- Property Damage Liability: This coverage is also required by most states and helps pay for property damage you may cause while operating the insured vehicle.
- Uninsured/Underinsured Motorist: Uninsured and underinsured motorist coverage helps pay for damages if you crash with a driver who doesn’t carry an adequate amount of car insurance.
- Personal Injury Protection: Personal injury protection helps with medical expenses for the driver and their passengers no matter who caused the accident.
Does Commercial Auto Insurance Cover Employee Theft?
So, comprehensive coverage in a commercial auto insurance policy covers theft, but what if it’s an employee who’s responsible for the theft? Some employees may refuse to return company vehicles until certain demands are met, especially if said employee was recently fired. If an employee suddenly drives off with a company vehicle and refuses to return it, contact the police and open an investigation. Your commercial auto insurance should cover such an incident involving theft, but it’s best to check with your insurance agency about the extent of your policy.
How to Avoid Commercial Vehicle Theft
Take precautions to avoid having to file a commercial car insurance claim due to theft.
Commercial auto insurance claims may be denied if an incident is ruled as negligence on behalf of the business.
- Add GPS tracking to every company vehicle
- Have set rules on when an employee can use the company vehicle and who can drive. Have these rules posted where every employee can easily access and see.
- Purchase an adequate amount of liability insurance to cover employee actions
- Have employees sign policies agreeing to use limits of company vehicles