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  • Writer's pictureBrendan Kelly

Who Needs Commercial Auto Liability?

Updated: Oct 29, 2021

The Necessity of Commercial Auto Liability Cover

Commercial Auto Liability is necessary if you own a business vehicle. This is an area which falls under our transportation reinsurance program. Commercial auto policies typically have higher liability limits than personal auto cover. This type of cover is necessary to ensure that the business and employees are protected while a company vehicle is being driven.

Transport Reinsurance

Commercial auto is used to cover a range of circumstances. Commercial auto liability cover may be needed if:

  • Your work vehicle is used to transport goods, people or equipment

  • You conduct a service with your work vehicle

  • Your vehicle is used to drive clients or employees

  • You tow a trailer which is used for your business

  • Your vehicle is operated by employees, or in the name of the business

Many business vehicles may be excluded from a personal policy, so it’s important to ensure you have adequate coverage, in case you need to pay legal or medical bills relating to an accident.

Why are Commercial Auto Rates Increasing?

In recent years, the US Commercial Auto market has undergone changes, due to challenges it has faced with poor underwriting performance. The traditional standard of underwriting, distribution and pricing has had to be reexamined due to pressures caused by factors like the increasing number of large injury losses and the ever-growing nature of settlements, which has led to claims inflation. Sourcing Commercial Auto Liability (re)insurance from a reputable provider has become increasingly important as traffic volume returns to pre-COVID levels and the severity of accidents increase.

We at AM RE are passionate about developing long-term relationships with our partners, in order to help navigate the current climate and ensure adequate cover for them and their business. Despite many reinsurers retracting from transportation, we are committed to writing profitable business within this line through our innovative model.

Does AM RE offer Commercial Auto Reinsurance?

AM RE is here to help ensure businesses have sufficient coverage, with our Commercial Auto Liability reinsurance. As a reinsurance intermediary, AM RE offers Property Casualty treaty reinsurance, traditionally using a Quota Share model. We evaluate transportation MGAs not only on historical performance, but also at the underwriting guidelines and pricing level. We look beyond the program and peel back the current guidelines in place, to help us understand what separates an MGA from its competitors.

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