Commercial Auto Insurance
For Small Businesses (Cars, Trucks & Vans)

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Read commercial auto insurance for small business articles about costs, coverages & options. EK Insurance provides business auto articles aimed at helping vehicle insurance buyers make and informed choice, and to better understand the policies you already have.

Commercial Auto Insurance For Small Businesses

Commercial Auto Insurance For Small Businesses

Whether you own a pizza shop that delivers or you are a florist that transports flowers to clients, company vehicles are an important part of your business. However, while they may be the backbone of your establishment, there are certain risks that come with owning and operating vehicles for small businesses, such as accidents and injuries. Fortunately, there is a way that you can protect drivers and your business from these risks: commercial auto insurance.

Not sure what commercial auto insurance for small business is all about? Keep on reading to learn more about this type of insurance and the benefits it can offer your business.

Does My Business Need Commercial Auto Insurance?

The best way to determine whether or not you need commercial auto insurance is to speak to an insurance agent or someone else who has ample knowledge of the topic. However, if the business you operate uses vehicles on a regular basis, it's a pretty safe bet that you are going to need it, no matter what size your business is.

It's pretty obvious that a company that has a fleet of vehicles and uses them to transport goods or perform services should have commercial auto insurance. However, if you own a small company or are a sole proprietor and don't have commercial drivers, it can be hard to determine if this type of insurance is right for you. Your personal auto insurance may not cover you or any of your employees in the event of an accident, so it's essential to find out immediately if commercial auto insurance is necessary.

Business auto insurance is a policy that covers any vehicles that are used for your business, as well as the people who drive those vehicles. It provides financial protection for you and any employees that drive for reasons related to your business if an accident or some other type of incident occurs.

While business vehicle insurance has some similarities to personal auto policies, there are notable differences in eligibility, coverages, exclusions, definitions & limits. Commercial car insurance is needed for certain type of vehicles (think heavy vehicles like tractors, dump trucks etc.). This can include cars used for business purposes as well as box trucks, food trucks, service utility trucks, etc.

Some professions that require commercial auto insurance include the following:

If your profession isn't listed above, don't assume that you don't need business auto insurance. As mentioned, if your business uses vehicles, there's a pretty good chance that you are going to need commercial auto insurance. Also you might be contractually required to have it of a customer requires it as part of a deal.

What Does Commercial Auto Insurance Cover?

As the name suggests, commercial auto insurance is a type of vehicle insurance policy that is specifically designed for businesses that own and operate vehicles. Generally, this type of insurance coverage provides four main types of protection:

  1. Liability coverage. This helps to pay for any third-party bodily injuries or property damage that may occur as a result of a vehicle-related accident. It can also help to cover the costs of legal expenses that may arise after an accident, such as lawyer fees, court fees, and settlements.
  2. Collision & Comprehensive coverage. If a company vehicle is damaged by an accident or something other than an accident (a falling tree, etc.), this type of insurance can help cover repair costs.
  3. Medical expense coverage. If a driver or passengers are injured, commercial auto insurance can assist with the medical expenses, no matter who is at fault.
  4. Uninsured / Underinsured motorists. Should someone who isn't insured cause an accident and hurt your company drivers, this coverage allows the business owner to claim against their own insurance for costs associated with injuries including medical expenses, pain and suffering & lost wages.

The type of commercial auto insurance for small business a company needs depends on the defined risks that are associated with using vehicles for business use. It's important for business owners to determine what risks they face in order to select the right policy. A reputable insurance broker can help you indentify these risks.

Whatever policy you choose, you should consider extending it so that it will cover any employees who may drive in order to complete tasks that are related to your business. For example, if you own a restaurant that delivers food, it's a wise idea to have your delivery drivers covered. Or if you rent vehicles you can get coverage for that as well and it is called hired & non-owned auto.

What Commercial Auto Insurance Doesn't Cover

An insurance provider will not cover any physical damage a business vehicle sustains if that damage is the result of exclusions. For example, if you or an employee is driving a company vehicle after business hours and are involved in an accident while doing something unlawful (committing a crime, for example), it's likely that the insurer will not cover the cost of damage to the vehicle.

Know as exclusions, which elimiate risks for the insurer, commercial auto insurance typically does not cover:

These are just some of the exclusions. It's important to know what your commercial vehicle insurance policy doesn't cover so that you can properly train and direct the employees who will be driving your company vehicles.

How Much Does Commercial Auto Insurance Cost?

How much does commercial auto insurance cost? The average price of business vehicle insurance varied widely based on certain factors. The premiums vary depending on the company and their underwriting rules, and it depends on the coverages and deductible selected. Following are some of the main factors that go into the price of a policy based on the business:

And the following factors have an effect on the price based on the acutal drivers:

Do You Need Commercial Auto Coverage If You Have Personal Auto Insurance?

That depends. If you are only using your personal vehicle to commute to and from work or to meet a business client on occasion, your personal auto insurance policy might be suitable. However, if any of the following apply, commercial auto insurance coverage is a wise investment for you, your employees, and your business:

Further Reading On Business Auto Insurance

Read through helpful commercial auto insurance for small business to help you better understand polices you own or are buying.

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Understanding The Business Auto Coverage Form

The person injured in an automobile accident may be a young child, a wage earner, a surgeon, or a homeless person. The costs of the accident may be relatively small or run into the millions of dollars, depending on the victim and his or her injuries. Do you have the assets to handle such costs? Moreover, is that the way you want to use them? If not, the Insurance Services Office (ISO) Business Auto Coverage Form is designed to protect you.

Consult the policy for definitions and limitations. The information below does not represent contract terms. The policy is subject to company underwriting practices.

What Is Covered

The ISO Business Auto Coverage Form protects your assets in several ways:

What Isn't Covered

Every insurance coverage form or policy has limitations and exclusions. This is because either the coverages are needed by only specific types of businesses or the risk or exposure to loss is not considered insurable for one or more reasons. Some of the more common exclusions are:

Always review the coverage form carefully for other limitations and exclusions and the details of the exclusions.

What Vehicles Are Covered

The coverages available are listed on the declarations. A box with numbers in it is next to the coverage. These are called symbols. They explain which autos are insured for the particular coverage. Each coverage can have one or more symbols. The symbols translate as follows:

If symbol 1 is used, no other symbols are needed. However, a combination of the other symbols is normal when symbol 1 is not used.

Loss Conditions

You and the insurance company have responsibilities and rights following a loss. Review these to fully understand them.

Endorsements

The ISO Business Auto Coverage Form provides very broad coverage. Many endorsements are available for use with it that broaden, limit, or exclude coverage.

Further Reading On Business Auto Insurance

Read through helpful commercial auto insurance for small business to help you better understand polices you own or are buying.

Related articles:

Get A Small Business Commercial Auto Insurance Quote

Not all commercial auto insurance for small business polices are the same. If your business uses cars, trucks, vans or more, let one of our expert agents take a look at your situation. In most cases we can save you money and offer you better policy options than you currently may have.

If you are looking for state specific Commercial Auto Insurance quotes, costs and information: California Commercial Auto Insurance, Colorado Commercial Auto Insurance, Delaware Commercial Auto Insurance,Florida Commercial Auto Insurance, Illinois Commercial Auto Insurance, Kentucky Commercial Auto Insurance, New Jersey Commercial Auto Insurance, New York Commercial Auto Insurance, Oregon Commercial Auto Insurance, Pennsylvania Commercial Auto Insurance, Texas Commercial Auto Insurance, Washington Commercial Auto Insurance.

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