Protect Your Business On and Off the Road

 

Whether you use one vehicle to visit customers or manage multiple vehicles for your business, an accident can create significant financial and operational problems.

Commercial Auto Insurance helps protect your business against covered losses involving vehicles used for business purposes, including liability for injuries or property damage and, depending on the coverage selected, damage to your own vehicles.

Personal Auto Insurance may exclude or limit coverage when a vehicle is being used for certain business activities, making it important to have coverage designed for how the vehicle is actually used.

What Is Commercial Auto Insurance?

Commercial Auto Insurance is designed for vehicles used as part of business operations.

 

Depending on the policy and coverage selected, it may help protect against costs resulting from:

• Injuries to other people

• Damage to another person's property

• Damage to covered business vehicles

• Theft, vandalism or certain weather-related losses

• Accidents involving uninsured or underinsured drivers

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Commercial Auto policies can be structured around the type of vehicle, how it is used, who drives it and the risks associated with the business.

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Who Needs Commercial Auto Insurance?

Businesses may need Commercial Auto Insurance when vehicles are regularly used for business activities.

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This may include businesses that:

• Visit customers or job sites

• Transport tools or equipment

• Deliver products or materials

• Transport clients or passengers

• Own or lease vehicles for business use

• Have employees drive company-owned vehicles

• Operate multiple business vehicles

 

Commercial Auto is commonly used by:

• Contractors

• Electricians

• Plumbers

• Landscapers

• Cleaning companies

• Restaurants and food businesses

• Retail businesses

• Property management companies

• Delivery businesses

• Professional service companies

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Not sure whether your vehicle requires Commercial Auto coverage?
A licensed insurance agent can review how the vehicle is used and help determine the appropriate type of coverage.

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What Does Commercial Auto Insurance Cover?

1. Bodily Injury Liability

If you or a covered driver causes an accident that injures another person, Bodily Injury Liability may help cover medical expenses, lost income and legal costs resulting from the accident, subject to the policy terms and limits.

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2. Property Damage Liability

Property Damage Liability may help pay for damage your covered vehicle causes to someone else's property, including another vehicle, building, fence or other property.

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3. Collision Coverage

Collision Coverage helps pay for covered damage to your insured vehicle resulting from a collision with another vehicle or object, regardless of who caused the accident, subject to the policy terms and deductible.

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4. Comprehensive Coverage

Comprehensive Coverage helps protect a covered vehicle against certain non-collision losses such as:

• Theft

• Vandalism

• Fire

• Falling objects

• Certain weather-related damage

• Glass damage

Coverage varies by policy.

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5. Uninsured and Underinsured Motorist Coverage

This coverage may help protect you when a covered vehicle is involved in an accident with a driver who has no insurance or insufficient insurance to cover the resulting loss.

Availability and requirements vary by state.

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6. Medical Payments / Personal Injury Protection

Depending on the state and policy, Medical Payments or Personal Injury Protection may help cover certain medical expenses resulting from an accident involving the insured vehicle.

Coverage requirements and availability vary by state.

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Additional coverage options may also be available depending on the vehicle, business and carrier.

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What Types of Vehicles Can Be Covered?

Passenger Vehicles

Cars, SUVs and light-duty vehicles used for business activities such as visiting customers, attending job sites or transporting employees.

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Cargo Vans and Pickup Trucks

Common among contractors, cleaning businesses, retailers and service companies transporting tools, equipment or supplies.

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Food Trucks

Vehicles used by restaurants, caterers, mobile food businesses and other food service operations.

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Trailers

Certain trailers used to transport tools, equipment or materials as part of business operations may also require appropriate commercial coverage.

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Commercial Auto vs. Personal Auto

Why Isn't Personal Auto Insurance Always Enough?

Personal Auto Insurance is designed primarily for personal driving.

When a vehicle is regularly used for business activities, the risk may fall outside the scope of a personal policy or require different coverage.

Examples of business use may include:

• Driving to customer locations

• Transporting tools or equipment

• Making deliveries

• Transporting clients

• Allowing employees to drive the vehicle

• Using the vehicle as part of daily business operations

The right policy depends on how the vehicle is used, not simply who owns it.

Read more → Commercial Auto vs. Personal Auto Insurance

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Common Commercial Auto Claims

Vehicle Accidents

A business vehicle collides with another vehicle, resulting in property damage, injuries or both.

Read more → What Happens When a Business Vehicle Is in an Accident?

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Damage to a Business Vehicle

A covered business vehicle is damaged in a collision or another covered event and requires repair or replacement.

Read more → Collision vs. Comprehensive Coverage

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Theft or Vandalism

A company vehicle is stolen or damaged by vandalism.

Read more → Does Commercial Auto Insurance Cover Theft?

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Uninsured Driver Accidents

A business vehicle is involved in an accident caused by someone who has little or no auto insurance.

Read more → Uninsured Motorist Coverage for Business Vehicles

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Employee Driving Accidents

An employee causes an accident while operating a company vehicle as part of their work.

Read more → Are Employees Covered Under Commercial Auto Insurance?​

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What Isn't Typically Covered?

Commercial Auto Insurance does not cover every vehicle-related loss.

Depending on the policy, exclusions may include:

• Intentional damage

• Normal wear and tear

• Mechanical breakdown

• Personal property or tools carried inside the vehicle

• Certain unauthorized drivers

• Certain uses not disclosed on the policy

Other types of insurance may be needed to protect tools, equipment, cargo or other business property transported in a vehicle.

Coverage and exclusions vary by carrier and policy. Always review your policy documents or speak with a licensed insurance professional.

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What Affects the Cost of Commercial Auto Insurance?

Several factors may influence the cost of Commercial Auto coverage, including:

• Type and value of vehicles

• Number of vehicles

• How the vehicles are used

• Driving radius

• Where vehicles are garaged

• Driver records

• Claims history

• Industry and business operations

• Coverage limits

• Deductibles

• Selected coverages

Because every business operates differently, Commercial Auto policies should be structured around the vehicles, drivers and actual business use.​

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Ready to Protect the Vehicles That Keep Your Business Moving?

Whether your business operates one vehicle or several, the right Commercial Auto coverage can help protect your business from unexpected costs on the road.

We'll help you understand your options and find coverage suited to your business operations.

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