Commercial auto insurance covers legal fees and other expenses if a business-owned vehicle is involved in an accident. It's required for all commercial vehicles in Missouri.
Any Missouri company that uses vehicles for business purposes must insure them appropriately. Commercial auto insurance covers vehicles owned by your business, while hired and non-owned auto insurance (HNOA) covers personal, rented, and leased vehicles used by your business.
Your personal auto insurance policy covers you while driving to and from work, but not while making deliveries, picking up supplies, and other work-specific uses. A business auto policy would cover you and your personal vehicle in case you’re at fault for an accident during a work-related errand.
Your business could be in legal and financial jeopardy without commercial auto insurance coverage. In Missouri, all vehicles are required to carry auto liability insurance.
If one of your business vehicles is at fault in an accident, you could face an expensive lawsuit or settlement. You’d likely have to pay for damage to the other vehicle or property, medical bills, lost wages, pain and suffering, plus other related costs.
Additionally, you could face severe penalties for not carrying auto liability insurance. Violations can result in four points added to your driving record, suspension of your driving privilege, and reinstatement fees.
The state of Missouri requires auto liability insurance coverage for all vehicles, whether they're for personal or business use.
Missouri's minimum amounts of coverage for auto liability insurance (and uninsured motorist coverage) are:
Your insurance agency might recommend higher limits than the insurance requirements based on the types of vehicles you own and how they’re used.
Semi-trucks, tractor-trailers, and other vehicles with a Missouri Department of Transportation serial number will have additional liability coverage requirements, depending on the type of vehicle and how it’s used.
You can see if your business needs additional types of coverage by checking your USDOT number or docket number with the Federal Motor Carrier Safety Administration.
If you’re using your own vehicle for work-specific activities, your personal auto policy wouldn’t cover you in the case of an accident. That’s why many small business owners purchase hired and non-owned auto insurance (HNOA). This type of insurance covers accidents in personal, leased, and rented vehicles used for work purposes.
If you or an employee gets into an accident while driving a personal car for a work errand, your HNOA coverage would help pay for any claims or lawsuits against your business. It’s worth noting that this would not cover damage to the vehicle used by your business.
While every Missouri business owner must meet the minimum requirements for business auto insurance, this mandate only applies to liability coverage. This can protect you if one of your vehicles causes an accident, but it does not insure you against a mishap caused by someone else.
It’s worth considering these other commercial auto coverage options to make sure you’re fully protected:
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