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Commercial Auto Insurance covers vehicles used for business purposes like cars, trucks and vans. When operating a vehicle for business purposes, it is imperative that a Commercial Auto policy is in place. 

Personal Auto policies will not cover a vehicle used for business purposes at the time of a loss.  

WHO is Commercial Auto for?

Commercial Auto coverage is meant to cover any business using their vehicle for business purposes. If a business is engaged in driving their vehicle while engaged in conducting business, it is imperative that they carry Commercial Auto Insurance.

WHAT does Commercial Auto protect against?

Commercial auto insurance covers insureds for vehicle damage, driver injuries and protects you and your business from claims involving bodily injury and property damage that you/your business may be responsible for while operating a vehicle in a business capacity. 

WHERE does Commercial Auto cover me?

Commercial Auto Insurance is meant to follow a covered vehicle within the specific radius listed/stated in the policy from the vehicles garaging location. Most insurance policies will specify the state(s) in which the Commercial Auto coverage applies.


Please be sure to check your policy for policy guidelines and other carrier details. 

WHEN should I carry Commercial Auto?

If you operate your vehicle for business purposes, you must insure your vehicle for "Commercial Use"AT ALL TIMES it is operating.


A common misconception by many business owners is that their regular insurance policy (Personal Auto Policy) will cover their business operations. THIS IS FALSE. Your policy must specify BOTH "Commercial Use" as well as "Personal Use". Otherwise, it is likely you are operating your vehicle for business purposes uninsured! 

WHY is Commercial Auto important?

Carrying Commercial Auto Insurance while you are operating your vehicle for business purposes is required by law. Without this coverage, you could face major out of pocket costs, fines and even jail time in some circumstances. It is important for every business owner operating a vehicle for business purposes to carry Commercial Auto. 

Types of Commercial Autos


Passenger Vehicles

Includes cars, light pickups, SUV's and more.

Ideal for running business errands or transporting clients and other passengers.


Food Trucks

Food service businesses including restaurants, caterers, ice cream vendors and food truck owners who depend on their vehicles.


Cargo Vans, Pickups & Utility Trucks

Common amongst contractors, retail and cleaning businesses. Coverage for whether you're transporting tools/supplies or have certain kinds of delivery operations.



Trailers carrying tools or equipment that are registered for use on public roads. Typically for contractors/businesses that transport equipment used in their operations.

Limits & Coverage

Bodily Injury:

If you are responsible for a car accident that injures another party, bodily injury liability coverage helps pay for medical expenses and lost income as a result of the injuries. This coverage may also help pay for legal fees if you are taken to court over an accident.


Most states require you to have bodily injury liability coverage on your insurance policy.

- Minimums vary by state

- Limits up to $2,000,000 CSL (Combined Single Limit)

Property Damage:

Property damage liability coverage is major component of a car insurance policy. It helps pay to repair damage caused by you to another party's vehicle/property.

Property damage liability is required by law in almost all states. It usually covers the cost of repairs if you are at fault in an accident that damages another vehicle/property such as a fence, building front, traffic light, light pole etc.

Property damage liability coverage typically doesn't cover damage to your own vehicle.

Physical Damage Coverage

There are three main types of physical damage coverage for motor vehicles.




      Specified Perils

1. Collision Coverage - for losses that result from the collision of a covered vehicle with any object or from the vehicle overturning.


2. Comprehensive Coverage - the broadest form of auto physical damage coverage, because it  provides for losses from any cause except collision and overturn (insured under collision coverage) and a few policy exclusions, such as wear and tear, mechanical breakdown and acts of war. Among the causes of loss covered under comprehensive are flood, fire, theft, glass breakage, falling objects, explosion, earthquake or colliding with a wild bird or animal.

​3. Specified Perils Coverage covers many of the same perils as comprehensive, but because it covers only “named” perils (those specifically named in the policy) it has a lower premium. It is sometimes referred to as “fire, theft and Combined Additional Coverage (CAC)”.

If your businesses has a large fleet of vehicles, over time, it may be more costly to insure the fleet for physical damage than it is to retain the risk, that is, pay for any physical damage directly rather than by insurance (also known as self-insurance).

Regardless of how many vehicles your business has, it may be cost effective to carry physical damage coverage only on the newer or more valuable vehicles.

For more information on our Commercial Auto program, please 

submit an online request or reach out to a licensed agent today

We are ready to:

1) Help you evaluate your business

2)  Identify the right coverage for your operations  

Request A Call
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