3 minute readBusiness
Commercial auto covers vehicles used for business — company-owned trucks and vans, and often employees' personal cars driven on business through hired-and-non-owned coverage. A personal auto policy can deny a claim that happened during business use, which is the gap most owners do not see coming.
What you need to know
Owned, hired, and non-owned
Each is a distinct coverage part. Businesses without vehicles still usually need hired and non-owned.
Higher limits are normal
Commercial vehicle claims involve commercial-sized judgments; $1,000,000 combined single limit is a common baseline.
Driver screening
Carriers look at MVRs. A poor driver list raises rates or ends eligibility.
Common mistakes
- Setting property and income limits from rounded-down guesses instead of real numbers.
- Skipping hired and non-owned auto because the business owns no vehicles.
- Signing contracts that require limits or wording the policy does not provide.
- Letting subcontractor certificates lapse, which shows up at audit.
- Treating insurance as a one-time purchase while the business keeps changing.
When to talk to an agent
Talk to an agent before signing a lease or a major contract, when you hire your first employee, when revenue or payroll changes materially, and any time you add a service, location or vehicle.
Frequently asked
This article is general information, not a policy or a promise of coverage. What your policy pays depends on its specific terms, limits and exclusions. Ask us to review your actual policy before making a decision.