Commercial liability insurance helps protect you from costs associated with injuries or property damage suffered by others in an accident caused by you or your employee in your insured commercial vehicle.
Commercial liability car insurance is broken up into two different coverages:
If, while driving on the job, you or an employee are found to be at fault for an accident that causes bodily injury to another person, this coverage will help pay for costs associated with the injury or injuries.
Bodily injury coverage is often broken up into two limits:
1. Limit per person (when one person is hurt).
2. Limit per accident (when multiple people are hurt).
If you cause an accident that results in damage to someone else’s property (e.g., car or house), this coverage will help pay for costs associated with repair or replacement of that damaged property.
Unlike bodily injury coverage, property damage is only tied to one limit (see below).
This one limit is called a combined single limit. It is often quite large, with some companies' lowest limits starting at $100,000 and going up to the millions of dollars.
A combined single limit on a commercial auto insurance policy will cover both bodily injury and property damage liability claims.
Having a combined single limit can be beneficial especially in scenarios where one type of liability claim is much higher than another. For instance, if you cause an accident that causes a considerable amount of damage to someone’s property but no bodily injuries, you will have the entirety of your combined single limit to use towards the property damage.