Will Commercial Auto Insurance Cover Damage from a Vehicle Fire

Commercial auto insurance is one of the most valuable investments a company can make for their asset. It is generally a must-have financial tool. Yet, when you can file a claim depends on a variety of factors. If a fire occurs, the cause of that fire plays an important role in determining if you have coverage for it. Here is a look at when you have coverage. 

What Caused the Fire? 

Imagine a commercial vehicle catching on fire on a highway. The damage is significant. Your employee may be okay, but the vehicle is a total loss. This is a big loss for most companies. Will your commercial auto insurance help? 

That depends on the cause of the fire and the type of coverage you have. Specifically, fires fall under comprehensive auto coverage. Verify that you have this type of non-collision coverage.  

Commercial auto insurance never covers neglect of maintenance and upkeep. It does not cover damage brought on by normal wear and tear, either. In other cases, it can help. Here are a few examples: 

• The vehicle’s electrical system catches on fire. There’s no known reason for this to happen in terms of maintenance. 

• Lightning strikes the vehicle during a storm. It creates an instant fire and damage to the vehicle. If you have comprehensive coverage, it may cover these losses. 

• A fire occurs as a result of an act of vandalism. Coverage generally applies in this situation. 

What happens if the engine’s overall health was the cause of the fire? In this case, the commercial auto insurance may deny a claim. It may not cover any instance in which the cause was due to poor upkeep. 

What happens if your driver is in an accident that causes a fire? In this case, several things can happen. If your driver caused the accident, your policy may help cover the losses. This is the case if you have collision insurance. There are limits here (such as the employee’s action and use of the car). If the other driver caused the accident, that driver’s liability insurance should provide financial compensation. 

What to Do if an Incident Occurs 

If there is such an incident, call the police. Get help immediately. Then, call your business insurance agent. Discuss what happened, why, and what claim options are available. Your agent will need information about the fire to file the claim.