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Commercial auto insurance

Commercial auto insurance protects small businesses when their vehicles are involved in a collision or are stolen, vandalized, or damaged. A commercial auto insurance policy provides funds to repair or replace the vehicle, and covers related medical expenses and third-party property damage.

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. It also protects you against damage that occurs while the vehicle is parked. 

Commercial auto insurance provides five types of insurance protection:

  • Auto liability covers third-party property damage or injuries. 
  • Medical payments provide money to cover medical bills related to accidents. 
  • Physical damage (also known as comprehensive coverage) pays to fix vehicle damage.
  • Collision coverage pays to fix damage to your car from a collision with another vehicle.
  • Uninsured motorist 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.

Commercial auto insurance, also known as commercial vehicle insurance, does not cover employees who use their personal vehicles for business purposes. For that, you need hired and non-owned auto insurance. However, when employees use their own cars or trucks, your firm may still be held liable for any damage they cause to third-party property.

Other things commercial auto insurance doesn’t cover include:

  • 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 rental vehicles
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Eligibility requirements

Commercial car insurance is available for small businesses that are not using vehicles for primary business purposes. For example, commercial auto insurance covers landscaping businesses that drive business vehicles to client sites. However, it does not cover a long-haul trucker whose business is exclusively delivering freight.

Other factors that could affect eligibility include:

  • Commercial credit
  • Transporting passengers for hire
  • Carrying hazardous or explosive materials
  • Delivering time-sensitive packages

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 commercial insurance quotes from A-rated U.S. carriers with one easy online application. Start an application today to protect your business against accidents involving your company vehicles.

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