Does Your Commercial Auto Insurance Policy Provide Coverage for Electronics?

Commercial auto insurance isn't just a rule for the road, but a benefit to nearly every company that operates a vehicle. Commercial auto insurance can cover more than the vehicle itself; it can cover some of the risks associated with the operation of that vehicle. For example, your commercial auto insurance policy may have electronic equipment coverage in place, which can help to protect many of the onboard components.

Commercial auto insurance generally provides coverage for damage to the vehicle itself through comprehensive and collision coverage. In addition, it provides liability insurance in case your vehicle damages another person's property. Furthermore, it often provides protection for the equipment and products you have onboard in your vehicle if they are components of your vehicle's normal operation. This might include:

• GPS units on your delivery trucks used to guide your team from place to place
  
  
• Refrigeration equipment for food delivery or service
  
  
• Electronic security systems in place to protect your vehicle from theft
  
  
• Electronics used to operate your vehicle
  
  
• Inventory on your vehicle

It’s important to check your commercial auto insurance plan carefully to learn what it covers. In most cases, these policies are comprehensive enough to provide protection for most of your equipment, inventory, tools and other business-related items.

Keep in mind that if you have a policy in place, it likely has an upper limit. This is the maximum amount your policy will cover to replace the contents or equipment that are onboard your vehicle. Don't overlook the value of increasing this limit if you routinely carry expensive equipment or other valuables.

Commercial auto insurance is a key component of your business insurance because it protects one of the largest investments in your business. It’s important to customize it to ensure that it meets all of your insurance needs and provides extensive coverage for electronic equipment you may have onboard for business-related use. Keeping your commercial auto insurance in line with your assets and equipment is an essential component to minimizing financial risk to your business.