Who Needs Commercial Auto?

Businesses that use cars, trucks, vans and other vehicles as part of their daily operations benefit from commercial auto insurance. There is a difference between what your personal and business auto insurance covers. It’s also a good idea to discuss your coverage options with a trusted insurance agent. Keep reading to find out what commercial auto insurance is, what it covers and who would benefit from purchasing it. 

Personal vs. Commercial Auto Insurance 

When driving your personal vehicle, you have different concerns than when you operate a business vehicle. For example, businesses have higher liability risks, so commercial auto insurance has to account for that. Business auto coverage has to account for the following: 

Drivers Who Need Commercial Auto Insurance 

If you use your vehicle for your business or own vehicles used in business operations, you may want to buy commercial auto insurance. This doesn’t just refer to semi-trucks and big rigs. 

Business fleets often consist of regular vehicles such as: 

 
Some vehicles are easier to think of as dedicated working vehicles, including: 

In reality, a commercial vehicle is any vehicle leased or owned by a partnership, business or corporation. The category can even extend to personal cars used for business purposes. If you operate or own any of these vehicles, it’s time to review your auto policy to ensure that you have adequate coverage. 

An agent familiar with commercial auto insurance can provide valuable advice on the type of liability you may face. They can also guide you on the best way to cover your risks with the right policy. 

What Commercial Auto Insurance Covers 

Commercial auto insurance offers many of the same benefits as personal auto insurance. You must buy the minimum coverage required by the state, which usually includes liability for medical fees and property damage in the event of an at-fault accident. 

There are also add-ons specific to businesses such as: 

• Employee Coverage: Your policy can insure employees who might drive vehicles regularly. Blanket policies for additional employees might also apply. 

• Equipment Coverage: You can often attach coverage for essential business equipment by buying inland marine coverage. 

At the end of the day, your commercial auto insurance agent can examine your business usage of vehicles. They can help you determine the amount and type of coverage you need.