In both business and private auto insurance, you are likely to encounter the PLPD acronym. Sometime the letters are separated in the middle, PL/PD, but the meaning is the same regardless of how the letters are expressed. The letters stand for Public Liability Property Damage, and include the most common types of auto insurance coverage required under state laws.
If you or your authorized employees are driving a company vehicle and are involved in an accident, you will be responsible, or publicly liable, for the damages and injuries that were caused. Since there is some form of liability in every vehicle incident, this type of protection is the most commonly needed coverage for auto insurance, and is what most states declare as part of the minimum insurance requirements.
Keep in mind that the default limits of a PLPD policy are minimum requirements and should not be considered complete protection. Those limits are typically low, but the potential for costs are high. If you are liable for more damages than your policy will cover, the remainder of the costs are considered out of pocket. For many businesses, the amount of liability they need increases according to the type of business. For example, if you have a fleet of large vehicles that could cause a substantial amount of damage, or that introduce risks while being driven, your rates are likely to be much higher than a business with only one or two compact cars to insure.
You have options for increasing the amount of PLPD coverage you have. The first option is to increase the limits on your policy. This option will increase your monthly premiums, sometimes substantially if you have several vehicles or expensive equipment in them. The second option is to purchase an Umbrella Liability policy. This type of policy works across all of your liability needs, including auto, building, and business insurance. Umbrella policies kick in when the regular coverage is exhausted, and cost very little when compared to auto insurance costs.