Coverage for Vehicles Used in Business Operations
Commercial auto insurance helps address liability and physical damage exposures involving vehicles owned or used by a business. Personal auto policies may limit or exclude coverage when a vehicle is used for commercial activities.
Businesses may need commercial auto insurance when vehicles are used to:
- Transport tools, equipment, supplies, or products
- Travel to customer locations or job sites
- Make deliveries
- Perform services away from the primary location
- Conduct other business-related activities
Coverage needs depend on vehicle ownership, vehicle type, business use, travel radius, driver history, and company operations.
What Commercial Auto Insurance May Cover
Subject to policy terms, limits, and exclusions, coverage may include:
- Bodily injury liability
- Property damage liability
- Collision coverage
- Comprehensive coverage
- Medical payments or personal injury protection
- Uninsured and underinsured motorist coverage
- Hired auto liability
- Non-owned auto liability
Hired and non-owned auto liability does not automatically provide physical damage coverage for rented vehicles or employees’ personal vehicles.
Examples of Commercial Auto Exposures
Commercial auto insurance may be relevant when:
- A company vehicle is involved in an accident.
- A delivery vehicle causes bodily injury or property damage.
- A business rents a vehicle for a temporary project.
- An employee uses a personal vehicle for an authorized business errand.
- A company vehicle is stolen or damaged by a covered event.
Whether an event is covered depends on the listed vehicles and drivers, policy provisions, endorsements, limits, exclusions, and circumstances of the loss.
Owned, Hired, and Non-Owned Vehicles
Owned Vehicles
Vehicles titled to the business may require commercial auto liability and, when appropriate, physical damage coverage.
Hired Vehicles
Vehicles rented or borrowed for business use may create liability and physical damage exposures. Coverage depends on the rental agreement and the applicable commercial auto policy.
Non-Owned Vehicles
Employees may use personal vehicles for authorized business activities. Non-owned auto liability may provide certain protection for the business, subject to policy terms.
Businesses should not assume that every vehicle or driver is automatically covered.
Information Commonly Requested
A business may be asked to provide:
- Description of operations
- Vehicle identification numbers
- Vehicle year, make, model, type, and value
- Vehicle ownership information
- Primary use of each vehicle
- Garaging locations
- Travel radius
- Driver and license information
- Motor vehicle records
- Prior insurance and claims history
- Hired and non-owned vehicle use
- Types of property transported
- Requested limits and deductibles
Driver and Vehicle Eligibility
Eligibility may be affected by:
- Driver experience
- Motor vehicle violations
- Accidents and claims
- Vehicle type, age, weight, and value
- Business use
- Travel distance
- Passenger transportation
- Hazardous materials
- Specialized vehicles
- Interstate operations
Trucking, passenger transportation, hazardous-material hauling, and other specialized operations may require a separate transportation insurance program.
Request a Commercial Insurance Review
Helga Rivera Insurance works with business owners to review vehicle ownership, business use, drivers, and operational information before evaluating available commercial auto coverage options.
Request a Commercial Insurance Review Call (571) 743-0156
Insurance availability, pricing, coverage, limits, deductibles, driver eligibility, and the ability to bind coverage are subject to carrier guidelines, application requirements, motor vehicle records, policy terms, and underwriting approval.
