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Auto or General Liability Insurance?

Auto or General Liability Insurance?
Learn more about the different kinds of liability insurance!

There are many kinds of insurance policies out there that are available for your business and vehicle. There are even multiple kinds of the same kind of insurance! These similarities in name and coverage make it very challenging to figure out the differences between policies. A great example of this phenomenon is liability insurance. There are two major forms of liability insurance: auto and general liability. Which type of liability insurance do you need? In this article, we discuss the differences and which ones are necessary for your business.

Auto liability protects your commercial vehicles.

Auto liability insurance is a specific type of liability insurance that protects vehicles. It is used in the case of an accident caused by one of your drivers. Liability insurance broadly pays out to other people in cases where you or one of your employees is at fault for property damage or bodily injury to someone else. Therefore, this specific policy pays for damage or injury that you cause other people while in a company vehicle.

Do I need this policy?

You need auto liability insurance if you operate commercial vehicles of any kind. The FMCSA requires a certain level of auto liability coverage for all commercial vehicles. So, if your business uses vehicles of any kind, then you need an auto liability policy.

General liability covers more than just vehicles.

General liability, as the name implies, covers more general circumstances than auto liability insurance. This insurance is more for businesses of all kinds. It protects you and your business from any lawsuits that the public may file against you for damage to property or a person. This is the policy that will protect you if you or one of your employees causes harm to someone or their property. It also covers situations where someone is harmed on company property.

Do I need this policy?

General liability insurance is not a legal requirement for all businesses, but it is highly recommended. Any business that has regular interactions with the public, like a retail store, should have this policy in its insurance package. That way, your business will have the protection that it needs in case of any harm to customers or their property that your company causes. Without this policy, you could be open to serious lawsuits, so don’t skimp out on general liability insurance.

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