General Liability
Pair your auto policy with general liability for broader third-party protection.
What is Commercial Auto Insurance?
Commercial Auto Insurance provides financial protection for your business-owned vehicles and drivers. Whether you have a single delivery van or a large fleet of trucks, this coverage is essential for handling the unique risks associated with business driving. It covers legal costs, medical expenses, and property repairs resulting from accidents involving your business vehicles.
Standard personal auto policies typically exclude coverage for business use, making a dedicated commercial policy a necessity for any business that operates vehicles as part of its daily operations.
Who Needs Commercial Auto Insurance?
Commercial Auto coverage is vital for any business that:
- Owns or Leases Vehicles: Including cars, trucks, vans, and specialty vehicles used for business purposes.
- Employees Drive for Work: When staff members use company-owned vehicles to visit clients, deliver goods, or travel between job sites.
- Transports Equipment or Goods: Protecting the tools and products being moved from one location to another.
- Service-Based Businesses: Such as HVAC, plumbing, or landscaping companies that rely on vehicles to reach customers.
- Livery and Transportation: Businesses that transport passengers for a fee.
Even if you don't own vehicles, you may need Hired and Non-Owned Auto coverage if employees use their personal cars for business tasks.
What Does Commercial Auto Insurance Cover?
A typical commercial auto policy includes several key types of coverage:
- Bodily Injury Liability: Covers medical expenses and legal fees if your business vehicle causes injury to another person.
- Property Damage Liability: Pays for damage caused by your vehicle to another person's property (e.g., their car or building).
- Collision Coverage: Pays for repairs to your business vehicle after an accident, regardless of who is at fault.
- Comprehensive Coverage: Protects against non-collision damage, such as theft, vandalism, fire, or weather-related events.
- Uninsured/Underinsured Motorist: Protects you if your vehicle is hit by a driver who lacks adequate insurance.
- Hired/Non-Owned Auto: Extends liability protection to vehicles your business rents or to employees' personal vehicles when used for business.
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FAQ
Frequently Asked Questions
What does commercial auto insurance cover?
Commercial auto insurance includes liability coverage for bodily injury and property damage caused by your business vehicles, plus physical damage coverage for the vehicles themselves. Collision coverage pays for accident damage to your vehicle, while comprehensive coverage handles theft, fire, and weather damage. Policies can also cover hired and non-owned vehicles used for business.
Who needs commercial auto insurance?
Any business that owns vehicles, leases vehicles, or has employees who drive for work should consider commercial auto coverage. That includes delivery businesses, contractors, and service companies throughout the country. If employees use their own cars for business, hired and non-owned auto coverage may still be necessary.
Can I use my personal auto policy for business driving?
Most personal auto policies exclude coverage for business use, so driving for deliveries or client work could leave you without protection. A commercial auto policy is designed for business vehicles, drivers, and the higher risks of commercial driving. If you only drive a personal vehicle for work occasionally, your agent can help you decide whether you need an endorsement or a full commercial policy.
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