What does commercial auto insurance cover?

Commercial auto insurance includes liability coverage that helps pay for damages in an accident you caused. That could include:

• Repair costs for the other person's damaged vehicle or property
• Legal expenses if you're sued over the other driver's injuries

Example: An employee rear-ends a sports car while driving your HVAC installation business’s truck. The accident is the employee’s fault. Your business’s commercial auto insurance policy can cover the cost of repairing the sports car. It can also cover the other driver’s medical expenses for injuries sustained in the crash.

Commercial auto insurance policies that include medical payments coverage can pay for:

• Your medical expenses if you're injured in a car accident
• Medical expenses for passengers in your vehicle

This coverage is available regardless of who caused the accident.

Example: A janitor gets into an accident while driving a cleaning company's van to a client's office. No one is seriously injured, but the janitor is brought by ambulance to a local hospital and given X-rays. The cleaning company's commercial auto insurance policy pays for the ambulance ride and medical treatment.

Commercial automobile insurance protects against vehicle theft and physical damage including:

• Vandalism
• Certain weather events
• Impact with another object

Example: A tree uprooted by a windstorm falls on a lawn care company’s truck and breaks the windshield. The lawn care business’s commercial auto insurance policy pays for a replacement windshield.

About one in eight drivers in the United States are uninsured, according to the Insurance Research Council [PDF]. When they cause accidents, they might not be able to pay for damages. Your policy's uninsured motorist coverage makes sure your business doesn’t have to pay for the resulting medical expenses or vehicle repairs.

Example: An employee at your IT consulting company is driving to a client’s home when another driver runs a stop sign and hits your company car. The other driver accidentally let his insurance policy lapse and is not insured. Your business’s commercial auto policy can pay for the damage to your car caused by the uninsured driver.

Commercial auto insurance does not cover personal or leased vehicles. However, your business can still be held accountable if an employee gets into an accident in a personal or leased vehicle.

Hired and non-owned auto insurance is the appropriate policy for vehicles that your business uses but does not own. This policy is recommended for businesses where employees regularly drive their own cars for work purposes.