Commercial Auto Insurance for Businesses

This assignment delves into the advantages of commercial auto insurance for businesses. It highlights how this type of insurance protects business owners, employees, and company assets from various risks associated with vehicle use. The paper discusses coverage aspects like liability protection, medical benefits, equipment replacement, and compliance with legal requirements. It also acknowledges potential challenges faced by insurers in this market, such as rising costs and loss ratios.

Running head: AUTO REPAIR GARAGE INSURANCE
Auto Repair Garage Insurance
Name of the Student
Name of the University
Author Note

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Commercial auto insurance
The insurance product or service in this paper is the auto repair garage insurance. The
chosen product or service in this regard is the commercial auto insurance. As the subject is
insurance, no specific product can be taken in this context. It would be better to take a service of
the insurance policies (Schneider, 2012). In this case the commercial auto insurance has been
selected. There are many benefits of the commercial auto insurance. This insurance service is for
the benefit of the business customers. If the repair of the auto services is required, the owner of
the vehicle will get the protection in real time. There will be no issues about who is driving the
vehicle.
1. If there are any cases of lawsuit because of harsh driving by the drivers, this insurance
policy will fix all the charges like the car damages, fees of the lawyer and all the medical
expenses.
2. The insurance limits are higher so there will be no problem about returning the monetary
amount for the damages (Desyllas & Sako, 2013).
3. If the employees of the company get into any accident, this insurance policy will save the
employees as well. It is because the employees are the main pillars of the organizations.
The insurance will cover all the internal stakeholders of the organization and thus,
employees will receive accidental benefits from the insurance.
4. This insurance policy protects the business employees from all the lawsuits.
5. This commercial auto insurance helps the business equipments like catering equipments
to the hydraulic fits. This insurance coverage will allow the company to replace these
tools and equipments. Thus, the insurance will provide holistic coverage for the
company.

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6. The commercial auto insurance will help to protect the interests of the requirements of
the business.
7. The commercial auto insurance will help the employees to get many advantages
(Desyllas & Sako, 2013). One of the key advantages to be gained by them is the financial
assurance of their accidents and any unwarranted incidents.
8. Many other benefits are also offered as well by the commercial auto insurance. This
includes providing medical benefits and assistance to the employees and their families.
9. The commercial auto insurance will offer the coverage to the concerned business owner
and the employees.
10. The business can stay with compliance with all the local and state laws.
11. The commercial auto insurance can be very beneficial in the case of providing the
protection for the entire business.
12. This kind of insurance helps the business to get protection from the severe lawsuits. The
business can be saved from being bankrupt.
13. The liability coverage can be given to the vehicles if commercial auto insurance is done.
The business will not be liable to be suffering losses.
14. The business owners can opt for working with their independent insurance agents for
better service.
Losses in commercial auto insurance
The losses that can be portrayed on the commercial auto insurance are:-
1. The market conditions are very soft in most of the no-auto lines. The meaning of this is
the fact the competition is very much.

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2. The investment returns have been very slow indeed. This would require more growth in
the coming years (Baker & Swedloff, 2012).
3. The direct premiums will increase in this year. So the sauto rates will go higher in many
cases indeed.
4. The costs are increasing so it is becoming very problematic to carry through the
commercial auto insurance (Baker & Swedloff, 2012).
5. The loss ratios are very high. This is why the auto insurance premiums will continue to
rise.
The two companies that provide the best services in the commercial auto insurance are Aviva
Canada Group of Companies and Umbrella Warranty Ltd (Umbrellawarranty.ca, 2018). These
two companies play an essential role in promoting the commercial auto insurance. This is a
beneficial insurance service for many organizations indeed. This is really an important service in
the limelight of auto repair garage insurance services.

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References
Baker, T., & Swedloff, R. (2012). Regulation by Liability Insurance: From Auto to Lawyers
Professional Liability. UCLA L. Rev., 60, 1412.
Desyllas, P., & Sako, M. (2013). Profiting from business model innovation: Evidence from Pay-
As-You-Drive auto insurance. Research Policy, 42(1), 101-116.
Schneider, H. S. (2012). Agency problems and reputation in expert services: Evidence from auto
repair. The Journal of Industrial Economics, 60(3), 406-433.
Umbrellawarranty.ca. (2018). Vehicle Mechanical Breakdown Coverage | Umbrella
Warranty. Umbrella Warranty. Retrieved 25 January 2018, from
https://umbrellawarranty.ca/