Insurance terms can be difficult to understand, and when it comes to protecting your business, it’s vital that you have a clear view of what your coverage entails.Getting to know the meaning behind some of the common terms used in commercial insurance is the best way to make shopping for your business policies simpler.
The definitions below provide a basic guide to the world of commercial insurance:
– Commercial Auto: a term for an auto policy that is designed for the use of a business rather than a personal vehicle policy. Cars falling under this type of policy are those owned or used by the business or employees on company business.
– Non-Owned Auto: a term for coverage of a vehicle that is owned by an individual other than the company, but is used on a company’s behalf.
– Hired Auto: a term for coverage of a vehicle that is leased or rented for business use.