Commercial Auto Insurance covers vehicles owned or used by your business for liability, collision, and comprehensive losses. It’s crucial for businesses with fleets or employees who drive for work.
Commercial Auto Insurance
What Is Commercial Auto Insurance?
Commercial Auto Insurance provides coverage for vehicles used in the course of business, protecting your company from financial loss due to accidents, theft, or damage involving business-owned vehicles. Whether you operate a fleet of trucks or a single car for client visits, this policy is essential to keeping your operations protected and on the road. It typically includes liability for bodily injury or property damage to others, as well as coverage for damage to your own vehicles.
Who Needs Commercial Auto Insurance?
Any business that owns, leases, or uses vehicles for commercial purposes should carry Commercial Auto Insurance.
Commercial Auto is designed for businesses that:
- Deliver goods or provide transport services
- Require employees to drive company-owned vehicles
- Have mobile operations (e.g., contractors, real estate agents)
- Lease or rent vehicles under the business name
- Use vans, trucks, or specialized vehicles for work
Common industries that often require Commercial Auto Insurance include:
- Construction and contracting
- Logistics and Delivery Services
- Food and Beverage Distributors
- Landscaping and Service Trades
- Sales Teams and Mobile Professionals
What Does Commercial Auto Insurance Cover?
Commercial Auto Insurance typically covers:
- Auto Liability: Covers bodily injury and property damage to others caused by your vehicle.
- Collision Coverage: Pays for damage to your vehicles caused by a crash, regardless of fault.
- Comprehensive Coverage: Covers theft, vandalism, weather events, and other non-collision incidents.
- Uninsured/Underinsured Motorist: Protects you if you’re hit by a driver who lacks sufficient coverage.
- Medical Payments/Personal Injury Protection (PIP): Covers medical expenses for the driver and passengers.
What Doesn't Commercial Auto Insurance Cover?
While Commercial Auto Insurance offers broad protection, it doesn’t cover:
- Personal use of company vehicles (unless explicitly endorsed)
- Employee-owned vehicles used for work (unless HNOA is added)
- Wear and tear or maintenance issues
- Cargo or tools inside the vehicle (covered by Inland Marine Insurance)
- Intentional damage or illegal activity
How Much Does Commercial Auto Insurance Cost?
The cost of Commercial Auto Insurance varies based on factors like business size, fleet size, industry, vehicle usage, location, and claims history.
Key Cost Factors:
- Type and number of vehicles
- Driving records and safety programs
- Vehicle usage and mileage
- Industry risk profile
- Coverage limits and deductibles
Typical Cost Range:
- Small Businesses: $1,200 – $2,400/year per vehicle
- Larger Fleets: $3,000 – $10,000+/year
- High-Risk Industries: $3,000 – $10,000+/year
- Hired & Non-Owned Auto Liability: can cost as little as $150 – $500/year if added to another policy
Risk Management Tips
To minimize potential claims:
- Conduct regular vehicle maintenance and inspections
- Implement driver safety training and MVR checks
- Use telematics or GPS tracking for fleet oversight
- Require employees to report accidents promptly
- Maintain written policies on vehicle usage and personal vs. business driving
Talk to An Expert
Our dedicated experts are ready to provide tailored insurance solutions to clients across a wide range of industries and specialized services.
Schedule a consultation to see how Alliance Risk can reduce your insurance risk.
– We look forward to partnering with you.