What Is a Commercial Policy in a Car Accident Case?
A commercial policy in a car accident case is an insurance policy specifically designed to cover vehicles owned by a business or used for commercial purposes. Unlike personal auto insurance, which protects individual drivers, commercial policies are designed to account for the higher risk associated with vehicles used for business operations. These policies often cover trucks, vans, delivery vehicles, company cars, or vehicles that operate across state lines. Because businesses generally have significant assets that are legally collectible in Texas, these policies typically carry much higher coverage limits than standard personal auto policies.
In Texas, personal auto insurance policies start at the state minimum of $30,000 for bodily injury per person and can go up incrementally to $500,000, with umbrella policies occasionally stacking on top. Commercial policies, however, often start at $750,000 due to federal and state regulations for vehicles used in interstate commerce. Depending on the size of the business, its vehicles, and the potential liabilities, these policies can range from $750,000 to multiple millions, sometimes exceeding $2 million. Umbrella coverage can further increase the total available insurance.
Having higher coverage limits can significantly affect a personal injury case because it increases the potential amount available to compensate victims for medical bills, lost wages, pain and suffering, and long-term rehabilitation costs. However, it’s important to note that a large policy does not automatically guarantee that a claimant will receive the full amount. The strength of the case still relies on proper documentation of the injuries, thorough investigation, and skilled negotiation or litigation. Without an experienced personal injury attorney to handle the claim, even a multi-million-dollar commercial policy may not result in full compensation.
