Commercial Auto: Why You Should Have it if You Use Your Vehicle for Business

When most entrepreneurs think of insurance coverage for their business, they immediately think of General Liability and Property Liability. Depending on what services they provide, they might also turn their attention to securing Workers Comp and Disability coverage. But the importance of Commercial Auto insurance is sometimes overlooked – especially by businesses that don’t own a fleet of vehicles or don’t use them regularly for tasks like deliveries, pick up and drop-offs, transport of materials, etc.

When Does a Business Need Commercial Auto?

If your business utilizes a vehicle in any of the following ways, Commercial Auto is an ideal way to protect yourself and your business from exposure to uncovered liabilities that result from an incident:

• The vehicle is operated by an employee.
• Ownership of the vehicle is in the name of a corporation or partnership.
• Transporting goods or people for a fee.
• Conducting a service.
• Hauling tools or other equipment.
• Towing a trailer for work purposes.

Why Does a Business Need Commercial Auto?

Like a personal auto policy, a Commercial Auto policy provides you with protection against the expenses you would incur in the event of personal injury, collisions, uninsured motorists, and damage such as theft, fire, hail, flood, and theft.

But Personal Auto insurance policies exclude various business uses (e.g., hauling materials to a job site) and vehicle types (e.g., dump trucks) leaving you at risk of paying out of pocket if an accident or other incident were to occur.

What Does Commercial Auto Cover?

Commercial Auto coverage is designed to protect your business assets in the event of a lawsuit or other incident more effectively, because the coverage limits are usually higher than what a personal auto policy would offer.

For example, if you were the cause of a collision while driving your commercial vehicle, your Commercial Auto policy would offer you protection from paying expenses out of pocket for the medical costs, lost wages, and lawsuits that could be brought against you because of the collision.

Beyond the standard protections mentioned above, Commercial Auto insurance policies can be customized to address your business’ specific needs. Endorsements can be added to include new vehicle replacement cost coverage, towing reimbursement, rental reimbursement, roadside assistance coverage, and gap coverage for auto loans or leases.

If your business utilizes a vehicle for any purpose, having a Commercial Auto policy in place to protect your automobiles as well as your drivers is the best way to address your risks and exposures when you, or your employees, are behind the wheel for work.

Need a quote for Commercial Auto coverage, or a review of the policy you currently have? Reach out to us any time: 845-239-4787 or Jason@jhoffmaninsurance.com.