What is the benefit of having commercial auto insurance?

What Is Commercial Auto Insurance?

Commercial auto insurance is a business insurance policy that applies to autos owned by or used in your business that protects your business against liability for damages caused by accidents involving your business autos and provides certain compensation to occupants of your business autos injured in accidents. If your business owns vehicles, a commercial auto insurance policy can provide valuable financial protection to you and your employees while driving a company owned vehicle or a hired or personally-owned auto in your business operations. It's important to know that a personal automobile insurance policy usually does not cover vehicles used in the operation of your business.

Do I Need Commercial Automobile Insurance?

If you own, lease, hire or use vehicles for business, you should minimally carry liability coverage. It's mandatory in most states for owned autos. In addition, businesses that move goods or people across state lines are required by federal law to have it. For larger commercial vehicles, you may need a commercial truck insurance policy.

You need commercial auto insurance for vehicles that:

  • Are used for business.

  • Carry a commercial license plate or tag.

  • Are registered commercial.

You should also carry commercial auto coverage if you or your employees use vehicles for work-related tasks, such as:

  • Driving clients to the airport;

  • Going on sales calls;

  • Taking packages to a shipper;

  • Shopping for office supplies.

Important to know: You may be required to get additional coverage if you use vehicles for certain functions, including:

  • Delivering food, products or publications;

  • Acting as a chauffeur, taxi or limo service;

  • Transporting flammable or hazardous materials;

  • Carrying equipment;

  • Towing vehicles;

  • Trucking and moving freight

Customized coverage to match your business

Selecting commercial vehicle insurance coverage that meets your specific needs is vital to protecting your business and income. A commercial auto insurance quote typically includes:

  • Liability

  • Physical Damage

  • Medical Payments

  • Uninsured Motorist

  • Hired Auto

  • Non-Owned Coverage

  • Any Auto

  • All commercial coverages

We can also adjust your policy to reflect seasonal changes to keep your rates low and your coverage steady.


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