Commercial Auto Insurance: Coverage Guide for U.S. Businesses

Commercial auto insurance is designed for vehicles used in connection with business activities. Depending on the policy, it may provide coverage for certain accidents, vehicle damage, liability claims, and other covered risks.

Who Needs Commercial Auto Insurance?

Businesses that use vehicles for commercial purposes may need commercial auto coverage.

Examples include:

• Contractors
• Delivery companies
• Landscaping businesses
• Construction companies
• Transportation companies
• Sales organizations
• Service businesses

Requirements vary by state, vehicle type, and business activity.

What Can Commercial Auto Insurance Cover?

Coverage depends on the policy.

Liability Coverage

Liability coverage may help pay covered costs when an insured business is legally responsible for injuries or property damage.

Collision Coverage

Collision coverage may help pay for covered damage to an insured vehicle resulting from a collision.

Comprehensive Coverage

Comprehensive coverage may address certain non-collision events, subject to policy terms and exclusions.

What Affects Commercial Auto Insurance Costs?

Insurers may consider:

• Vehicle type
• Vehicle value
• Driver history
• Business location
• Driving radius
• Number of vehicles
• Business type
• Claims history
• Coverage limits

How to Compare Commercial Auto Policies

Business owners should compare:

• Coverage limits
• Deductibles
• Exclusions
• Premiums
• Additional endorsements
• Driver requirements
• Claims services

It is also important to determine whether employees or other authorized drivers are covered.

Final Thoughts

Commercial auto insurance can be an important component of a business risk-management strategy.

Because coverage and legal requirements vary by state, businesses should compare policies carefully and verify applicable requirements before purchasing coverage.