Business Auto Insurance for Commercial Vehicles

What Is Business Auto Insurance?

Business auto insurance provides coverage for vehicles owned, leased, or used by your company. This includes cars, trucks, vans, and specialty vehicles used for business purposes. The policy covers vehicle damage, liability for injuries you cause to others, and medical payments resulting from auto accidents.

Why You Need Business Auto Insurance

• Personal auto policies exclude coverage for business use of vehicles
• Protects your business from liability when employees drive for work
• Covers vehicle repairs or replacement after accidents
• Provides higher liability limits than personal auto policies
• Required by law for business-owned vehicles in most states
• Protects against uninsured and underinsured motorists

Types of Business Auto Coverage

Business auto policies offer several coverage options. Liability coverage pays for injuries and property damage you cause to others. Physical damage coverage includes collision and comprehensive protection for your vehicles. Medical payments coverage handles medical expenses for you and your passengers regardless of fault. Uninsured motorist coverage protects you when hit by drivers without adequate insurance.

Understanding Covered Vehicles

You can structure your policy to cover owned vehicles, hired or borrowed vehicles, or non-owned vehicles that employees use for business. If employees regularly drive their personal vehicles for work errands or client visits, non-owned auto liability coverage protects your business from potential claims.

How Driver Records Affect Your Premium

Insurance companies review the driving records of everyone who operates your business vehicles. Accidents, tickets, and violations increase your premium. Implementing a driver safety program and establishing clear vehicle use policies can help you maintain lower rates and reduce accident frequency.

Does My Personal Auto Policy Cover Business Use?

Most personal auto insurance policies specifically exclude or severely limit coverage for business use. If you use your vehicle regularly for business purposes beyond commuting, you risk having claims denied. Business auto insurance ensures you have proper coverage when using vehicles for work.