Understanding Liability vs. Physical Damage Coverage for Your Business Vehicles

Business vehicles can be exposed to a range of risks on the road. Liability and physical damage coverage are two essential parts of a commercial auto policy, each addressing different types of losses. At Lord & Associates Insurance Agency, we help Georgia businesses review their coverage needs.

What Does Liability Coverage Include?

Liability insurance is often required by law for business vehicles. This coverage can help cover costs if you or an employee is found at fault in an accident. It generally consists of two main parts:

• Bodily injury liability coverage may help cover medical expenses, lost wages and legal fees if someone else is injured in an accident involving your business vehicle.
• Property damage liability coverage can cover the cost of repairing or replacing another party’s property, such as a vehicle or building, damaged in an at-fault accident.

How Does Physical Damage Coverage Work?

Physical damage coverage applies to your business vehicles and may help pay for repairs or replacement after certain covered losses. This coverage typically includes:

• Collision insurance may cover repairs to your vehicle if it is damaged in a crash with another vehicle or object, regardless of who is at fault.
• Comprehensive insurance can cover damage from events other than collisions, such as fallen trees, hail, theft, vandalism or animal strikes.

Get Started Today

Our team can help you understand your options and find a policy that matches your budget and priorities. Contact Lord & Associates Insurance Agency to request a free personalized quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.