Commercial vehicles come in all shapes and sizes, from food trucks to mobile pet groomers, 18 wheelers and everything in between! And no matter what your business is driving, you need a Commercial Auto Insurance policy to help keep you protected on the road.

Many businesses owners assume company vehicles are already covered under their Personal Car Insurance policy, especially when those cars are driven for a mix of business and personal use. Since business vehicles are driven more often and are typically exposed to greater risk than a personal vehicle, it is important to purchase a separate type of policy called Commercial Auto Insurance. This protection is also a required coverage for businesses in many states.

As a locally owned small business in St. Charles, Mo., Webb Insurance has the expertise you need to find the right coverage for your organization’s needs without breaking the budget. Get answers for your questions about finding coverage for work vehicles below, or contact us for a free quote.

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What is Commercial Vehicle Insurance?

This is a car insurance policy specifically designed for vehicles that are operated by businesses and employees. Many vehicles in different industries are used for business purposes, from farming and trucking to hospitality, lawn services and everything in between. This could include:

Buses;
Cars, SUVs and vans;
Limousines;
Motorhomes and RVs;
Trucks; and,
Trailers, including tractor trailers.

There are several components of a Business Auto Insurance policy, just like a personal Car Insurance policy. By consulting with an insurance broker about your business practices and how your vehicles are used, your agent can help identify the policy components that will offer reliable protection from property damage, car accidents, vandalism and other business risks.

A standard Commercial Car Insurance policy could include:

Liability coverage to pay for damages to a third-party, such as medical bills resulting from a car accident or replacing a street sign your employee accidentally crashes in to. If a covered accident or incident results in a lawsuit, liability coverage can also help provide legal defense.

Personal injury coverage offers protection for your employees and operators of covered vehicles. While liability coverage is for the safety of others on the road, driver protection is for you and your team!

Vehicle protection is fairly self-explanatory: this is the component of your policy that would help pay to repair physical damages to your covered vehicles. An endorsement for collision coverage helps pay for damage resulting from an accident, and an endorsement for comprehensive coverage helps pay for damages caused by other incidents, such as hail or vandalism.

Specialty coverage can help address additional business risks and may be required for certain vehicles such as large trucks, tow trucks and trailers. When you purchase a policy online without speaking to a real live insurance agent, you may be missing out on important specialty coverages you didn’t know you need or may be required to carry.

Business Auto Insurance FAQs

Do I need Commercial Car Insurance if my employees drive their personal vehicles for work?

Both employers and employees may need a special type of commercial coverage in this scenario.

Business owners should consider a Non-Owned Car Insurance policy to help protect themselves against any liability for an employee’s actions while driving their own personal vehicle within the scope of their employment.
Employees who use their own personal vehicle for work may need food delivery insurance, rideshare insurance or another type of commercial policy. Speak with an insurance agent to find the coverage that is best for your needs.

Do I need a commercial policy to drive for Uber or food delivery service?

Rideshare services such as Uber and Lyft have very unique insurance challenges that all driver-partners need to be aware of. Read more about accident protection for rideshare drivers.

If you work for a pizza or food delivery service, your employer may require you to carry an additional type of coverage called food delivery insurance. Even if this coverage is not required by your employer, it can be very helpful if you get into an accident while driving for work, since this would typically not be covered by a standard Car Insurance policy. See the five things delivery drivers need to know about insurance.

What is the difference between Commercial Auto Insurance and Fleet Insurance?

As a general guideline, Business Auto Insurance is ideal for companies with one to five company-owned vehicles. Businesses with five or more company cars may be better suited for Fleet Insurance. A Fleet policy allows you to keep all of the vehicles in your workforce organized under one plan and may offer a group rate to help provide discounted pricing.

What is not covered by a Commercial Car policy?

Standard Business Vehicle protection does not provide coverage for:

Leased or employee-owned vehicles
Damages that correspond to Workers’ Compensation
Expected or Intentional harm, such as a road rage accident

Some insurance companies may also exclude coverage for certain vehicles. For example, not all insurers offer protection for semi-trucks, trailers, or cars manufactured 50 to 70+ years ago.

Remember: Commercial activity is excluded under a personal Car Insurance policy. If you have any questions about what is or is not covered, contact your insurance broker.