Unlike private vehicles, commercial ones require an additional layer of security, hence the need for commercial transportation insurance cover. This insurance coverage ensures that your transport company is covered against some risks commercial vehicles face in the line of operation. It’s essential to buy them, but you must know what they cover to determine the plan to buy. Below are some of the things such insurance covers. 

Passengers 

If you operate a taxi business, you need covers such as taxi insurance to protect passengers in your taxi. This insurance will compensate in case of a road accident that leads to loss of life or life-altering injuries. It can also cover damages to the client’s property, such as luggage and minor injuries while in the taxi. 

Break down

Owning a fleet of commercial vehicles means some vehicles may break down. Insurance cover can cover the cost of towing the vehicle to the nearest repair center or your business garage. Most insurance agencies have a 24-hour accessible breakdown hotline that your driver should have for such emergencies. 

Rented Premise

Transport services such as taxis require a base of operation, which might call for renting a premise. Such premises are equally at risk of damage by fire or adverse weather. Insurance can cover such damages to ensure you don’t pay for the repair of such damages out of pocket. The insurance agency will reimburse your landlord if you repair the premises.

Repair In case of Accident

Damaged vehicles can affect your business, especially taxis. Unfortunately, the cost of repairing a car involved in an accident can leave a dent in your business accounts. Commercial transportation insurance helps cover the cost, provided you have an updated policy. The insurance coverage can also cater to the replacement of damaged parts. Comprehensive coverage can cater for fire and vandalism too.

Loss or Key Damages

Since a driver can damage or lose a key. Insurance covers the cost of key replacement or repair, depending on the need. However, the loss or damage must not be due to negligence. The driver should inform the insurance company, which will contact a qualified locksmith to repair the damage or replace the key. The driver repairing it without informing the insurance company can complicate compensation. 

Legal Cover

Legal cover can be expensive to pay for out of pocket when the need arises. And since accidents that lead to claims are inevitable, commercial transportation insurance coverage can cater to the cost. The insurance covers legal costs, including attorney fees and court payment orders. Such covers will save you from high legal costs. 

Commercial transport coverage, like taxi insurance, covers the areas you have read about in this article. However, the insurance policy does not cover theft caused by negligence, unsafe or unauthorized vehicle use, or driving out of the area. But there are some bespoke coverage services like home start recovery that the insurance agency can provide. Therefore, it would be best to understand the areas such an insurance policy covers to decide which plan you will buy and if it suits your needs. Make a point of using this information as you make an informed choice for commercial transportation insurance cover.