Do you or your employees use vehicles that are titled in the company name? Then you need Commercial Auto coverage. Many small-business owners make the mistake of thinking that if their car is in their personal name then they don’t need commercial coverage. But your personal policy won’t cover you if you’re using that vehicle for commercial use.
A commercial auto policy can provide similar coverage as your personal auto insurance policy, like covering vehicle repair or replacement because of an accident or paying for claims of any third-party injured in the accident.
In addition to a commercial auto policy, you should purchase “non-owned auto and hired auto liability” coverage, as well. This will extend coverage to the business when employees use their personal vehicles for the business on an excess basis. It will also provide coverage whenever the business makes use of vehicles it does not own, including your car or an employees’ when used for business purposes.
The biggest contributor to auto claims is from distracted drivers or failure to obey traffic signs. Companies who manage a comprehensive fleet safety program can see reductions in their overall claims and potentially lead to reduction in the policy premiums.