car keysDoes your small or medium-sized business utilize a car, bus, or delivery vehicle? Has the pandemic shifted your business model causing you to use a personal vehicle to deliver your commercial or business products or services? If so, you may be considering adding a commercial auto policy to your business policy. 

Many business owners assume that your personal auto policy affords all the coverage you need. Some also believe that your policy will protect you if you are involved in an accident while driving a vehicle you use for business. These assumptions may be wrong depending upon your coverage. Read along to find out what types of insurance coverage you need for your vehicle that is being used for business needs. 

What is Commercial Auto Insurance? 

Commercial auto insurance is used to cover the automobiles used in conducting business. This could include business travel autos, delivery vehicles, service utility trucks, vans, and boxcars. 

Coverage often includes: 

  • Property damage liability. 
  • Liability for bodily injury to others and personal injury to you, employed drivers, and passengers. This could include medical costs and lost wages due to the injury. 
  • Optional bodily injury coverage for injuries that occur outside of the state in which you reside.
  • Collision coverage for costs associated with an accident, regardless of who is at fault. 
  • Comprehensive coverage for damage other than collision. 
  • Non-owned auto coverage for when you or your employees drive a rented or borrowed vehicle. 
  • Loading and unloading liability.

There are also specialized coverages that can be offered through your insurance. These include physical damage to hired and borrowed vehicles and lease or loan gaps. 

car driving with no mobile being used

Will a Personal Auto Policy Cover My Business Driving? 

Most personal auto policies specifically exclude business use. If you get into an accident while driving for work, your insurance company will likely reject your claim. Commercial vehicle insurance is a policy of physical damage and liability coverage for amounts, situations, and usage not covered by a personal auto insurance policy.

If you are using your personal vehicle for any kind of business purpose, be sure to talk with your agent. The business may be required to get a non-owned business liability endorsement for these situations. For instance, if your company has shifted its business model during the pandemic to accommodate the need for delivery services or other automobile services, consider adding a commercial auto policy to your overall business policy. 

Commercial auto insurance typically provides for higher policy limits than personal auto insurance. Ultimately, the point is to safeguard your business assets from lawsuits and other liabilities.

Commercial auto insurance and personal auto insurance have quite a lot of similarities. However, one of the key differences with a commercial policy is that it gives you the ability to protect yourself and your business from exposure to uncovered liabilities that result from a serious accident.