Many businesses operate on-the-go. Delivery services, businesses that transport people or goods, contractors, and others depend on vehicles to get the job done. Massachusetts, like other states, requires all vehicles to carry insurance, and many business activities cannot be covered under a personal auto policy. To protect your vehicles and employees, you need a commercial auto insurance policy.
Auto accidents are expensive, often including damage to the vehicles, injuries, and sometimes other property damage. Though Massachusetts is a no-fault state, meaning you will file with your own insurance company first, if you or your employees are involved in an accident while conducting business activities, your company could be liable and sued for excessive damages. If you own or lease vehicles under your company name, you must have a commercial auto insurance policy. However, even if your employees use their own cars, your company may need a commercial auto policy for protection.
MA has strict insurance regulations, and failure to follow them can result in fines, penalties, and even jail time. If your company owns or operates vehicles, you should make sure you understand your insurance obligations under state law to avoid these repercussions.
MA minimums are set for personal vehicles, but may increase for commercial policies depending on the type of vehicles you have and what they are used for. Your agent can help you determine what your minimum coverages are. The absolute minimums required by the state are:
Lawsuits for injury coverage can begin with medical costs over $2,000 and/or serious or permanent injuries. To protect your company, it is essential you have adequate auto insurance.
Commercial auto insurance provides important protections to you, your company, and your employees. If you are involved in an accident while conducting company business, a personal auto policy will not provide the coverage you need. Consult your Massachusetts agent to find the commercial auto policy that’s right for your business.