Commercial auto insurance protects small businesses when a company-owned vehicle is involved in a collision, stolen, vandalized, or otherwise damaged.
How commercial auto insurance protects a business
Commercial auto insurance covers damage to a company vehicle and bodily injuries when you or an employee cause an accident.
Commercial auto insurance provides five types of insurance protection:
- Auto liability covers legal costs if someone sues over damage caused by your vehicle.
- Medical payments for medical bills related to accidents.
- Collision coverage pays to fix damage to your car from a collision with another vehicle.
- Comprehensive coverage pays for vehicle theft and damage from other causes, such as vandalism.
- Uninsured motorist coverage protects you in case a driver without insurance injures the driver or passengers in your vehicle. In some states, it also covers damage to your vehicle from uninsured motorists.
Some types of coverage are optional, such as collision coverage. Other types of coverage are mandated by state law. Typically, business-owned vehicles must be covered by commercial auto insurance.
Commercial auto insurance does not cover personal vehicles
Commercial auto insurance, also known as commercial vehicle insurance, only covers business-owned vehicles. It does not cover personal vehicles used for business purposes, unless that's their primary use.
If your employees use their own vehicles for work errands, they may need hired and non-owned auto insurance.
This policy also does not cover:
- Items you carry in the vehicle
- Using the vehicle to provide ridesharing through Uber or Lyft
- Employee injuries (normally covered through workers’ compensation insurance)
- Incidents involving rented or leased vehicles
Who needs commercial auto insurance?
You need commercial auto insurance if your business owns vehicles and uses them to:
- Travel to and from job sites
- Transport tools and equipment used for business purposes
- Transport employees or clients
Businesses in the following industries are excellent candidates for commercial auto insurance:
How do I find free quotes for commercial auto insurance?
Insureon helps small business owners compare quotes from top-rated insurance companies with one easy online application. Start an application today to protect your business against accidents involving your company vehicles.