Commercial Auto Insurance Overview
Commercial Auto insurance protects your business vehicles in the same way that your personal auto insurance does. However, your business-owned vehicles likely face more risk than does your own car, especially since they probably feature your business name for all to see on the road.
Do you need Commercial Auto insurance?
Commercial Auto insurance is applicable to any vehicles used for business purposes. If your vehicles are equipped with special features, you may need added liability coverage. Auto coverage for your small business ensures that you, your employees, other individuals, your vehicles and your business are fully protected from:
- Bodily injury and property damage to a third party
- Accidents caused by uninsured or underinsured drivers
- Physical damage to owned, rented, hired or employee vehicles
- Medical costs for you, your employees and any other passengers
- Theft and damage
Recommended for businesses that:
- Use automobiles for their business
- Have owned, hired and non-owned autos, rented or leased vehicles
- Have employees who drive their own vehicles for business
Small business auto market trends: what our experts are saying
The commercial auto sector remains extremely challenging due to social inflation and the long-tail nature of auto liability claims, which contribute to adverse loss development for carriers. The cost of auto repairs is significantly increasing year-over-year due to the addition of more electronics and safety devices by manufacturers. Supply chain issues for certain parts further add to the time and cost of repairs and claims processing.
Consider this claim scenario
A bakery owner has a car accident while making a customer delivery using her personal car. Her personal car insurance refuses to cover the accident because she was performing a business function when it occurred, and she doesn't carry commercial auto insurance. This leaves her with no risk protection and no claim payout to help replace her car or pay for the other driver's damages.
Want to learn more? Contact our small business risk experts