Commercial auto insurance: Protecting your business on the road
                     Commercial auto 
insurance: Protecting 
your business on the road
 Commercial auto insurance is essential coverage for businesses that own or 
operate vehicles. It offers protection against liability for accidents involving 
company vehicles and provides compensation for injuries sustained by 
occupants of the vehicles during business operations.
 Unlike personal auto insurance policies, commercial auto insurance is 
specifically designed to cover vehicles used in a business setting and is 
crucial in ensuring that your business is protected against the financial 
consequences of automobile accidents.
 It’s important to note that a personal car insurance policy may not provide 
adequate coverage for vehicles used in a business context, making 
commercial auto insurance a necessary investment for any business that 
operates vehicles.
 What does commercial auto insurance cover?
 Commercial auto insurance covers the financial costs of damages and injuries 
resulting from accidents involving company vehicles. It typically protects for:
• Liability: Covers the costs of third-party damages and injuries caused by a 
business vehicle, including medical expenses and property damage.
• Physical damage: Covers repairs or replacement of the business vehicle(s) 
in the case of collision or theft.
• Medical expenses: Covers medical costs for the driver and passengers of 
the business vehicle in case of an accident.
• Uninsured/underinsured motorist coverage: Protects the business in 
case of an accident caused by a driver who does not have insurance or does 
not have enough insurance to cover the damages.
 Commercial auto insurance offers two types of physical damage coverage. 
Collision coverage protects against damages resulting from auto accidents, 
while comprehensive coverage protects against damages from non-collision 
causes, such as weather, theft, and other events.
 Additionally, there are two types of liability coverage. Bodily injury to others 
in case of an at-fault accident. Property damage offers liability coverage for 
damages to others’ property in case of an at-fault accident.
 The specific coverage and limits of a commercial auto insurance policy can 
vary, and it is important for businesses to carefully review and select the 
coverage that best fits their needs.
 Do you need commercial automobile insurance for your business?
 Having commercial automobile insurance is a requirement for businesses that 
own, lease, hire or use vehicles for operations. In most states, liability 
coverage is mandatory for owned vehicles. Businesses that engage in 
interstate transportation of goods or people are also required by federal law 
to have commercial automobile insurance. For larger commercial vehicles, 
such as trucks, a commercial truck insurance policy may be necessary to fully 
protect your business.
 Commercial auto insurance is necessary for vehicles that are used for 
business purposes, have a commercial license plate or tag, or are registered 
commercially. In addition to vehicles used for business purposes, commercial 
auto insurance is also recommended for vehicles used by you or your 
employees for work-related tasks. This includes driving clients to the airport, 
going on sales calls, transporting packages to a shipper, or shopping for office 
supplies.
 Additional coverage could be required if your business does any of the 
following:
• Food, product, or publication deliveries
• Chauffeur, taxi, or limousine services
• Transportation of flammables or hazardous substances
• Equipment transportation
• Vehicle towing
 How commercial auto insurance works
 Commercial auto insurance provides coverage for vehicles used in the 
operation of a business and the drivers of those vehicles. If an accident 
occurs, the policy protects your business against liability claims made by 
others who were injured or had their property damaged as a result of the 
accident. In the event of a claim, your liability coverage will pay for damages 
up to the policy limit and also cover the costs of defending you or the driver 
in a lawsuit. Any damages above the policy limit are the responsibility of the 
business.
 Does a commercial policy cover personal use?
 Commercial auto insurance policies often cover the personal use of business 
vehicles, but there may be limitations to the coverage provided for family 
members. It’s important to check with your insurance agent to determine if 
you need additional coverage for any family members who may be using the 
business vehicle.
 Make sure your business is protected
 To make sure your business is protected, reach out to one of our insurance 
agents today. Your business vehicles are an essential part of your operations, 
and the right insurance coverage is vital to ensure that you and your 
employees are protected on the road. Don’t take any chances with your 
business’s financial security.