Commercial Auto Insurance for Business Vehicles and Fleets

Personal auto policies typically exclude or limit coverage when a vehicle is being used for business purposes. If an employee is involved in an accident while driving for work and the vehicle is only covered under a personal policy, the business may face an uncovered claim.

Commercial auto insurance is designed for vehicles used in business operations, whether owned by the business, leased, or used by employees.

Coverage may include:

• Liability — bodily injury and property damage
• Physical damage — collision and comprehensive
• Uninsured and underinsured motorist
• Medical payments or personal injury protection where applicable
• Hired auto liability
• Non-owned auto liability
• Fleet coverage
• Scheduled vehicle coverage

Businesses may need commercial auto if they:

• Own vehicles in the business name
• Have employees driving for work
• Use vehicles to transport tools or equipment
• Make deliveries
• Visit job sites regularly
• Operate a fleet of vehicles
• Lease or rent vehicles for business use

Hired and non-owned auto coverage can be important when employees use personal vehicles for work or when the business rents vehicles. This coverage is often overlooked but can be important for restaurants, contractors, sales teams, and professional businesses.

Without hired and non-owned auto coverage, a business may face liability exposure when an employee has an accident in their personal vehicle while running a business errand.

Businesses with multiple vehicles may benefit from fleet coverage, which can simplify policy management and potentially provide better pricing than insuring each vehicle separately. Fleet programs are available for a range of vehicle types and industries.

Commercial auto pricing is affected by:

• Driver history and MVR records
• Vehicle type, age, and value
• How vehicles are used
• Radius of operation
• Number of vehicles
• Loss history
• State of operation
• Industry type