Who Does Commercial Auto Insurance Cover

Commercial auto insurance provides coverage for business vehicles. It helps protect small businesses from financial losses due to accidents, damage, or other unexpected road events.

Thus, business car insurance is essential for businesses that own or use vehicles to accomplish various commercial activities.

Commercial auto policy covers different types of vehicles, including company cars, work vans, commercial trucks, utility trucks, and SUVs. 

In this article, we delve into who and what commercial insurance covers. That way, you’ll know what to expect when buying insurance for work vehicles.

Who Is Covered By Commercial Auto Insurance?

Commercial auto insurance covers business owners, licensed employees who operate business vehicles, family members, and any other driver listed on the policy.

Therefore, you should have workers or family members who regularly drive company vehicles listed on your business car insurance policy.

What Does Commercial Auto Insurance Cover?

Commercial auto insurance provides different types of coverage to help protect your business vehicles. They include:

Bodily Injury

Your business auto policy pays for injuries you or your licensed employee cause to others in an at-fault accident. It also covers legal defense costs if your business is sued over the accident.

Property Damage

Commercial auto insurance covers the damage you or your employee cause to someone else’s property, like a car, house, fence, etc. The policy also covers the cost of lawsuits resulting from at-fault accidents.

Medical Payments

You or your driver and other passengers onboard your business vehicle may get involved in an accident. MedPay auto policy covers the medical expenses regardless of who is at fault.

Repairs and damages

Collision insurance pays to repair or replace your business vehicle if it’s damaged in an accident. 

A comprehensive commercial policy pays to repair or replace your vehicle in the event of theft, fire, vandalism, etc.

Uninsured (UM)/Underinsured motorists (UIM)

You may be hit by a driver who doesn’t carry insurance or has insufficient coverage. UM/UIM covers bodily injuries and medical bills for you and your passengers if struck by a hit-and-run driver.

Does Commercial Insurance Cover Non-Owned Vehicles?

Yes, commercial auto insurance can be extended to cover non-owned business vehicles. For instance, your employees may sometimes use their cars for work errands.

Or, your business may temporarily rent or hire vehicles for business use, like visiting clients or worksites.

Liability coverage for such situations can be provided via “non-owned commercial auto coverage”. It covers rented or leased vehicles and employee cars used for business purposes.

Is Personal Use Covered By a Commercial Policy?

No, commercial auto insurance doesn’t cover personal use, but only commercial use. If you use your car or rented vehicle for personal activities, consider getting a personal auto policy. It’s meant to cover vehicles used for personal purposes.

Should You Get Commercial Auto Coverage?

You should consider getting commercial auto insurance if:

You own a vehicle that you use for business purposes
You lease or hire vehicles to run business errands
You own a business for moving people or goods

Remember that your auto policy won’t cover you when using your vehicle for business purposes. Plus, most states will require you to carry the minimum commercial liability insurance.

Without coverage, you may end up paying for damages, injuries, medical bills, lawsuits, and repairs & damages out of pocket. Such lump sum payments may cause serious cashflow crunches in your business and jeopardize operations.

Talk To An Independent Insurance Agent

An independent insurance agent can help you find the best commercial auto insurance for your business. They’re more likely to know who has the best commercial auto insurance in your city. 

They can also help you get the best commercial insurance rates to find an affordable commercial auto policy.