If you or your employees use a vehicle for business, you need commercial auto insurance. Personal insurance policies don’t cover business use. What kinds and how much coverage you need can depend on which state you’re in, and whether you cross state lines in the process of doing business.
Types of Auto Insurance for Businesses
There are two kinds of auto insurance policies for businesses:
Commercial auto insurance – If you or your employees use a vehicle owned by the business for commercial reasons (usually for 50% or more of the time), you need commercial auto insurance.
Non-owned car liability coverage – If you or your employees occasionally use personally-owned vehicles for business reasons, consider purchasing non-owned car liability insurance.
Types of Vehicles that Need Commercial Auto Insurance
Vehicles considered commercial vary from typical vehicles like cars, pickup trucks and sports utility vehicles to limousines and taxis to trucks like semis, utility vans, flatbeds and dump trucks.
Some examples of vehicles and purposes you need commercial insurance for include:
- Delivery and pickup of goods
- Transporting people
- Messenger services
- Any vehicle that is registered or owned by a business
- Vehicles that are rented or leased to people
What Commercial Auto Insurance Covers?
Commercial auto insurance covers personal injury, vehicle and property damage and liability protection. It can protect a business in the event of:
- Death or injury of drivers due to an on-the-job collision
- Injury to others during a collision while on the job
- Damage to others’ property or vehicles caused by you or your employees
- Damage or loss to business vehicles
- Damage or loss to cargo
- Uninsured motorist protection
Depending on your particular business, you may need to add on policies to provide enhanced coverage for employees or people who work for you, equipment coverage, and liability to protect assets in case your business is sued.
Finding the Right Commercial Auto Insurance
A lot of variables influence the amount of coverage you need and how much you will pay. To get started, get online quotes for commercial auto insurance. For more information, call (866) 845-4032.