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5 FAQs About Commercial Auto Insurance


If you own your own small business our team can help you find the commercial auto insurance coverage you need. Read on For 5 FAQs that business owners should know about commercial auto insurance!

What Is the Purpose of Commercial Auto Insurance?

Commercial auto insurance is intended to protect your business from legal liability claims that cause property damage or bodily injury while a company vehicle is in use, or when a personal vehicle is being used for business purposes.

What Type of Insurance Coverage Do You Need?

The type of commercial auto insurance coverage you need will depend on several factors, including:

  • Who will be driving your vehicles
  • How vehicles are used in your business
  • Whether you own or lease
  • Whether personally-owned vehicles will be driven for your business

Why Is Commercial Auto Insurance Needed When a Personal Vehicle Is Used for Business Purposes?

If you drive your personal vehicle for business purposes, or have employees who drive theirs, you can benefit from commercial coverage. Personal car insurance policies will not cover the business for an accident that occurs when a personal vehicle is being used for business purposes.

For example, if you are driving to a meeting with a client and get involved in an accident, your business will not be covered under your personal auto policy. If the other parties involved in the accident believe you were at fault, they can sue both you and your business for compensation. Personal auto insurance policy limits may not be enough to cover a serious accident in which multiple people are injured. In such a case, the injured parties could attempt to collect damages from your business.

What Types of Vehicles Are Covered by my Policy?

Your business auto policy scope of coverage can be broad or narrow, depending on the options you choose. The coverage could be vehicle specific or vehicle or broadly extend coverage to any vehicle. Generally, your options for coverage under a commercial auto policy include:

  • Vehicles owned by your business
  • Vehicles hired or leased by your business
  • Vehicles used for your business, including those vehicles the business does not own, hire, or lease

What Types of Coverage Does My Policy Provide?

Commercial auto insurance policies typically cover the following types of losses:

  • Liability: Property damage or bodily injury caused to third parties.
  • Medical: Covers medical expenses for you or your passengers injured in a crash, regardless of fault.
  • Collision: This covers damage to your vehicle in a crash with another motor vehicle or an object, or in a rollover.
  • Uninsured/underinsured motorist: In case of an accident caused by an underinsured, uninsured, or hit-and-run driver, this covers property damage and medical bills.
  • Comprehensive: Also called physical damage coverage, comprehensive pays for repairs or replacement if your vehicle is stolen or damaged by vandalism, collision with an animal, or certain weather conditions.

How Do I Learn More About Commercial Auto Insurance?

Contact us At 703-430-1200 to find out how we can support your small business or help protect you and your family with Auto, Home, Business & Life Insurance

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