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Does My Business Vehicle Need Insurance Coverage?

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For motor vehicles that are used in business, it is vital to ensure you have commercial vehicle insurance coverage. Personal auto insurance policies are not designed for vehicles that are used for business activities and will refuse to pay for accidents if a vehicle was engaged in business activities. When you have commercial auto insurance, the policy can cover family members performing business duties, employees, and others driving a covered vehicle.

What Does Commercial Auto Insurance Cover?

If you have a vehicle that you plan on using for business purposes, it is crucial to buy coverage for it before any business use. You want to make sure that you and any other drivers who operate it are protected every time the vehicle is used.

The coverages provided in a commercial vehicle policy include:

  • Property damage liability: If your business vehicle collides with someone else’s vehicle or property, this can help cover the cost of any property damage as well as potential legal fees you may incur.
  • Bodily injury liability: In an accident, people can get hurt, so this coverage can help pay for medical expenses associated with any injuries sustained. It can also help pay for deaths that may result from the accident as well as legal fees.
  • Combined single limit: While liability policies tend to provide separate limits for bodily injury claims and property damage, combined single limit policies provide the same dollar amount of coverage per occurrence for bodily injuries or property damage, no matter how many people may have been involved.
  • Medical payments (no-fault/personal injury): If the driver or passengers in your business vehicle are injured in an accident, this will cover their medical expenses, regardless of who was at fault.
  • Uninsured motorist: If you or the driver of your business vehicle is involved in an accident with an uninsured driver or a hit-and-run driver, this can help cover the cost of medical expenses and property damage.
  • Collision: If your business vehicle is in a collision with another vehicle, the damage is covered by collision insurance, up to the policy limits.
  • Comprehensive physical damage: Accidents are not the only risks your business vehicle could encounter. If it is damaged due to flood, theft, fire, vandalism, or other risks, this coverage, based on the covered perils in the policy, can save you from serious financial damage should other problems occur.


If you have tools, materials, or inventory that you are transporting from one location to another in a business vehicle, these are not covered by your commercial auto insurance. These items can be protected with a business owner’s policy.

If you plan on using your vehicle for your business, it is crucial to get it insured before you start using it, so you are protected. We understand choosing the right policy can be challenging, which is why our knowledgeable insurance agents are here to provide the advice and guidance you need to make the best choices for your business, your budget, and how vehicles are used in your enterprise.

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