Commercial Auto
What is commercial auto insurance?
Commercial auto insurance is a type of insurance coverage designed for vehicles used for business purposes. It provides protection for vehicles that are owned, leased, or used by a business and its employees. This type of insurance is distinct from personal auto insurance, which covers vehicles used for personal, non-business-related activities.
Who Needs Commercial Auto Insurance?
There are many instances where you should consider commercial auto insurance for business car purposes:
- If you operate a business where your employees use personal vehicles on-the-job.
- You own a food truck or catering business.
- You use a vehicle to transport goods.
- You’re a contractor that carries tools in your vehicle.
Without this business insurance coverage, you’re putting your business at risk—and could lose thousands of dollars. If you get in an accident, the costs pile up. You may have to repair or replace your vehicle and anyone else involved in the accident. The cost of medical expenses for you, passengers, and other injured motorists can add up quickly. Add in the case of property damage, possible lawsuits, and even the death of someone injured—you’re looking at astronomical costs.
Commercial auto insurance offers various types of coverage to address the diverse needs and risks associated with business-related vehicle use. The specific types of commercial auto insurance coverage can include:
Liability Coverage:
- Bodily Injury Liability: Covers medical expenses, lost wages, and legal expenses for injuries caused to others in an accident for which the insured business is at fault.
- Property Damage Liability: Covers the costs of repairing or replacing another person's property (e.g., vehicles, buildings) damaged in an accident where the insured business is at fault.
Physical Damage Coverage:
- Collision Coverage: Pays for the repair or replacement of the insured vehicle when it is involved in a collision with another object or vehicle.
- Comprehensive Coverage: Protects against non-collision events, such as theft, vandalism, natural disasters, and other specified perils.
Medical Payments Coverage:
Covers medical expenses for the driver and passengers in the insured vehicle, regardless of fault in the accident.
Uninsured / Underinsured Motorist Coverage:
- Uninsured Motorist Coverage: Protects the insured business against damages caused by a driver who does not have insurance.
- Underinsured Motorist Coverage: Provides coverage when the at-fault driver;s insurance is insufficient to cover the full extent of the damages.
Hired and Non-Owned Auto Coverage:
- Hired Auto Coverage: Extends coverage to vehicles that the business rents or leases for business purposes.
- Non-Owned Auto Coverage: Provides coverage for vehicles that the business does not own but are used for business purposes, such as employees' personal vehicles.
Rental Reimbursement Coverage:
Reimburses the insured business for the cost of renting a replacement vehicle while a covered commercial vehicle is being repaired after a covered loss.
What Types of Vehicles are Covered by Commercial Auto Insurance?
Business vehicles can encompass a wide range, from your personal auto in which you deliver your produce to the local farmer's market, to the trucks used for your construction company and beyond:
- Cars
- Cargo Vans
- Box Trucks
- SUVs
- Refrigerator Trucks
- Vans
- Pickup Trucks
- Food Trucks
- Dump Trucks
- Catering Trucks
NOTE: Some insurance companies require a separate policy for semi-trucks and dump trucks.