Business auto insurance helps cover vehicles owned by your business.

Whether you have a fleet or one commercial vehicle, consider business auto insurance.

Add an extra layer of coverage to your auto policy.

A vehicle collision is never good news, but when it’s one of the cars or trucks owned by your business, the consequences are more complicated. Business auto insurance takes all the elements of normal auto coverage and adds on extra protection. This may include coverage for the following:

Higher liability coverage than auto insurance for individuals.

For example, when obtaining business auto insurance you may usually get much higher liability coverage to reflect the fact that a business typically has more assets at risk than an individual would. Additionally, you can get collision insurance. This type of coverage pays out for damage to your vehicles no matter who caused the collision—a protection that’s often a must if you lease or finance commercial vehicles.

Do your employees need coverage on their personal vehicles?

If your employees are using their own personal vehicles for business-related reasons and they get into an accident, your business might be held liable. With non-owned auto liability coverage, your business may be protected.

Essential for employees who use their own vehicles for work.

It’s also worth considering non-owned auto liability coverage, which is an add-on or a separate policy covering those instances when your employees drive their own personal cars or trucks as part of their work for your business. This type of protection may help reduce the risk of messy legal complications if they are injured or their vehicle is damaged while on the job.

Business auto insurance is essential for those that run a business. Contact us to learn more and to go over your specific needs and coverage options.

FAQs

What is business auto insurance?

Business car insurance, also known as commercial auto insurance, protects vehicles used for business-related activities, covering costs for property damage and bodily injuries in work-related accidents. Unlike personal auto insurance, it is necessary for businesses that transport goods or passengers, make business-related deliveries, or have employees using vehicles for company purposes. Commercial policies provide broader coverage for the increased risks associated with business use and can protect the business owner and employees from expensive out-of-pocket expenses.

Who needs business auto insurance?

Anyone who uses a vehicle for business activities—including company-owned, leased, or even personal vehicles—needs business auto insurance, which is also known as commercial auto insurance. This type of coverage is necessary because personal auto policies typically do not provide coverage for business-related incidents. Business auto insurance protects against financial losses from bodily injury, property damage, and vehicle repairs when a vehicle is used for business tasks, such as transporting people or goods, attending job sites, or hauling equipment.

What’s the difference between personal and business auto insurance?

Personal auto insurance is for personal use and occasional errands, while business auto insurance covers vehicles used for work-related activities, such as transporting goods, equipment, or customers, or vehicles registered to a business. Key differences include higher liability limits and coverage tailored to business-specific risks, making commercial policies more expensive but necessary for avoiding gaps in protection.

Does business auto insurance cover employees driving their own cars for work?

No, standard business auto insurance does not cover employees driving their own personal vehicles for work. Instead, a business owner needs to purchase a specific addition to their commercial policy called Hired and Non-Owned Auto (HNOA) liability coverage.

How can I save on business auto insurance?

To save on business auto insurance, you can reduce your risk through safe driving programs and vehicle maintenance, increase your deductible, bundle your auto policy with other business insurance. Implementing these strategies helps lower your premiums by demonstrating a lower risk to insurance companies.

Reduce Your Business Risk

• Prioritize safe driving: Implement a driver safety program, provide ongoing training, and establish clear policies against distracted driving to reduce accidents and claims.
• Maintain your vehicles: Regular vehicle inspections and keeping your vehicles well-maintained can help prevent breakdowns and accidents, which lowers your risk.
• Hire safe drivers: Emphasize hiring employees with good driving records to minimize the risk of accidents and claims.