If a vehicle owned by the business is involved in a covered loss, commercial auto insurance covers legal expenses and money claims for property or bodily injury made by parties outside the business.
Does your small business own a vehicle? If the anser is ‘yes,’ then likely need commercial auto insurance. In fact, nearly every state requires commercial auto insurance coverage for business-owned vehicles.
Even in the state of New Hampshire and Virginia, where auto insurance is not required, drivers are still responsible for any damages they cause when operating a motor vehicle.
So, you can conclude that even when commercial auto coverage isn’t required, it’s still the right choice for your small business. Without protection, your business could end up paying big dollar settlements in medical bills and other claims related costs.
When you buy a commercial auto policy, you get protection to cover bodily injury and property damage claims against your business for covered accident. Your commercial auto coverage also includes legal expenses if your business is sued. Additionally, if you purchase comprehensive and collision coverags, the commercial auto policy may also cover vehicle theft, vandalism, and other losses and damages.
Most commercial auto policies include liability insurance to cover your business’s legal costs if one of your employees gets into an accident.
Read more about what commercial auto insurance covers.
Businesses that buy commercial auto protection typically have:
Yes! Commercial auto insurance does not provide coverage for personal vehicles. If you or your employees sometimes drive personal vehicles for business purposes, consider buying hired and non-owned auto insurance.
Hired and non-owned auto insurance provides liability coverage for vehicles your business uses but does not own. That includes:
It’s important to understand the difference between personal and commercial auto. The first thing that distinguishes a commercial auto insurance policy is that is is designed for commercial vehicles that cover a lot of ground, used in the course-and-scope of your work, and may be use to carry work products, inventory or tools. You commercial auto insurance policy also provides much higher coverage limits to account for the increased risk.
Personal auto insurance policies are designed to cover behavior related to the personal use of vehicles. These types of behaviors are your commute and travel unrelated to business uses, and pleasure use. Private passenger auto insurance doesn’t frequently provide for higher limits, and cannot provide certificates of insurance to allow you on worksites.
Did you know, if you’re involved in an accident while driving your personal vehicle for work, your insurance company might deny your claim. That’s right, most personal auto policies have limits on business and artisan use. This is why small businesses, especially sole proprietors, that use their personal vehicle for work should consider commercial auto insurance.
If you’re uncertain which policy you need, check with an insurance agent.
Read more about the difference between personal and commercial auto insurance.
A commercial auto policy premium is based on a number of rating factors, including:
Commercial auto protection costs a median premium of $142 per month. In fact, 44% of our small business customers pay less than $125 per month for their policies.
This is really a question for the business owner to discuss with an insurance agent. However, at a minimum, your commercial auto policy needs to meet your state’s financial responsibility requirements. When selecting your coverage, you need to make sure your policy has sufficient coverage for all costs associated with an accident. Otherwise, your business could end up paying legal fees and other claims related expenses out-of-pocket.
Talk with an agent to discover policy options that match your driving behaviors and risk. Options that cover different risks include:
Just like your personal auto policy, a business can control the cost of its commercial auto policy by adjusting your deductible and limits. Just keep in mind, a policy with a higher deductible will cost less, but you’ll have to pay more before you can collect on a claim. And a policy with lower limits exposes the business to out-of-pocket claims expenses for larger losses.
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Commercial auto insurance is required by law in every state except for New Hampshire and Virginia. Even in the states where it is not required by law, drivers can still be held liable for damages. Find commercial auto insurance laws in your state.
Vehicles that are used but not owned by your business, such as employee vehicles or a leased truck, can be covered by hired and non-owned auto insurance. This policy is not required by law. However, personal auto insurance policies typically exclude business use, which makes this policy essential for businesses that rely on a non-owned vehicle.
Commercial auto insurance helps cover the cost of accidents involving vehicles owned by your business. That includes medical bills, property damage, and legal expenses if you’re sued.
Some policies include protection against vehicle theft, vandalism, and other types of damage. You can choose to add different types of coverage to your policy, such as collision or comprehensive coverage.
Read more about what commercial auto insurance covers.
Each state sets its own requirements for minimum commercial auto insurance coverage. That includes a certain amount of bodily injury liability coverage, property damage liability coverage, and uninsured motorist coverage.
You can purchase the minimum amount of coverage to meet state requirements, or purchase more if you want to be able to make higher claims on your policy.
Commercial auto insurance only covers vehicles owned by a business. However, your personal auto insurance policy likely excludes business use.
Hired and non-owned auto insurance is the appropriate policy for vehicles your business uses but does not own. This policy is not required by law.
Our online application for commercial auto insurance takes about 15 minutes to complete. The application requires some basic information about your business, including where it’s located, the number of employees, and estimated revenue for the upcoming year.
In most cases, we’ll deliver multiple quotes from top U.S. carriers as soon as you finish the application. Look them over and pick the policy that works best for you. A licensed insurance agent is available to assist you throughout the process.
Once you purchase a policy, you can access your account and obtain proof of insurance. Typically, it takes between 24 and 48 hours to complete the process and gain insurance for your business.
It’s easy to add insurance at a later date. Your insurance agent can adjust the coverage amount on your policy, and provide assistance if you need to purchase additional policies.
If you cancel your policy early, you run the risk of paying more for coverage down the road. Insurance companies typically charge higher rates to businesses that start and stop coverage. You also leave your business exposed to potential risks if you cancel your coverage.
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IronPoint Insurance Services, LLC is an independent insurance agency licensed (#0G87821) with the California Department of Insurance. We are authorized agents for many A+ rated Arizona, California, Colorado, Nevada and Utah insurance companies. We provide consumers with online, phone, and in-person insurance services through our insurance company relationships.
IronPoint Insurance Services, LLC offers multiple insurance quotes through ComparisonQuote.com to provide consumers several options for their insurance products. We offer auto insurance through Travelers Insurance Companies, Nationwide Insurance, Safeco Insurance, MetLife Auto & Home, and Progressive. We are authorized insurance agents for these companies and do not charge any fees for our services. If an IronPoint insurance agent tries to charge you broker or agency service fees for representing these companies, please contact us immediately.
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