Commercial Auto Insurance
Vehicles move us from place to place, and they’re often vital pieces we use to drive our small businesses forward. But how do you know if a commercial auto insurance policy is right for you?
If your business:
- Owns, leases, or rents vehicles like cars, vans, or trucks
- Has employees who drive their personal vehicles for work errands or deliveries
- Approves team members to use company-owned, rented, or leased vehicles
- Manages a fleet of livery drivers (like taxis or shuttle operators)
Then, this policy can provide the coverage you need. Discover how you can keep your small business moving safely with Insurance Canopy today!
What Is Commercial Auto Insurance?
Commercial auto insurance is a type of small business insurance designed to cover vehicles used in your day-to-day work, like a car or delivery van.
This policy is intended to help your business lower or eliminate the cost of claims caused by business vehicles, such as:
- Accidents
- Damages
- Injuries
- Lawsuits
Whether you lease a fleet of vans or own a work truck, commercial auto insurance protects your business from the financial damages tied to work-related driving.
Is Commercial Auto Required by Law?
Commercial auto is legally required in most states if your business owns, leases, or uses vehicles for work. Having a minimum liability coverage is typically mandated by law.
Think of it as your business’s seatbelt — it’s legally required and financially smart!
Pro Tip: If your employees drive their own cars for work, like deliveries or errands, you might also need Hired/Non-Owned Auto Insurance added to your policy to stay protected.
What Does Commercial Auto Cover?
Commercial auto can cover your business when a vehicle used for work is involved in an accident, damaged, or causes harm to others. It’s intended to help pay for lawsuits, medical bills, and repairs.
Typical coverage offered by a commercial auto policy includes:
- Liability Insurance: Pays for damage or injuries your driver causes to other people or property
- Physical Damage: Think collision and comprehensive coverage — this covers damages to your vehicle from accidents, vandalism, theft, fire, or weather (like hail)
- Medical Payments or Personal Injury Protection (PIP): Pays for medical expenses for the driver and passengers (including you or your employees) after an accident, regardless of fault
- Uninsured/Underinsured Motorist: This steps in to cover injuries to those in your vehicle if the other driver who caused the accident doesn’t have enough (or any) insurance
Even if you use your insured everyday car for business errands, personal auto insurance usually won’t cover work-related accidents. That’s where commercial auto liability insurance steps in. It’s made to help cover injury or property damage costs your business might be legally responsible for.
What Types of Vehicles Does It Cover?
Commercial car insurance covers business vehicles such as cars, trucks, and trailers. It can protect a wide range of vehicles used for work-related purposes, specifically:
- Cars used for sales calls, errands, or client visits
- Pickup trucks and utility vehicles for contractors, landscapers, or service pros
- Detachable trailers for hauling, transportation, or junk removal
- Cargo vans and delivery vans used for transporting goods or equipment
- Box trucks and straight trucks used in delivery, moving, or trade services
- Food trucks and catering vehicles
- Service vehicles like plumber, electrician, or cleaning vans
- Mobile trailers for pop-up shops, on-call services, or private events
- Passenger vehicles, buses, taxis, or limousines used for shuttling clients or employees (including livery or rideshare)
The Big Idea: If it’s a motor vehicle used for your business operations (even part-time), it likely qualifies for coverage under a commercial auto policy.
What Does It NOT Cover?
As with any other insurance policy, commercial auto insurance has limitations, conditions, and exclusions. Some of these include:
- Farm trucks, tow trucks, and large commercial trucks (like semis)
- Content inside the vehicle (like cargo, tools, or inventory)
- Normal wear and tear or mechanical breakdown
- Intentional damage or illegal use
- Racing or stunt driving
- Drivers not listed or authorized to drive the vehicle
- Employee injuries or unrelated medical expenses
- Accidents involving a personal vehicle
- Repairs to a rental vehicle
- Accidents outside your policy’s covered territory (like international travel)
- Employee-owned vehicles used for work
Policies and coverage may differ from one insurance carrier to another. Please refer to your policy for exact coverages or speak with an insurance professional for assistance.
Who Needs Commercial Auto Liability Insurance?
Any business that owns or leases vehicles for work, like deliveries, service calls, or transporting people, needs commercial auto liability insurance to cover accidents, injuries, or property damage.
More specifically, these types of businesses include, but are not limited to:
- Contractors or tradespeople
- Delivery services
- Food and catering services
- In-home or private services
- Manufacturers and wholesalers
- Mobile service providers
- Retail services
- Service call fulfillment
- Transportation, rideshare, and livery services
Examples of Commercial Auto Claims
Even a small accident can trigger multiple claims. From damage to vehicles to lawsuits for injuries, commercial car insurance can protect your business from devastating expenses.
| Incident | Coverage | Estimated Payout |
|---|---|---|
|
Delivery van rear-ends car |
|
$18,000
|
|
Contractor’s truck stolen |
|
$42,000 |
|
Food truck hit by car |
|
$65,000 |
|
Employee crashes personal car |
|
$27,000
|
Coverage details and claims amounts may vary. These examples are for illustration only. Your policy terms and the specifics of your situation will determine actual coverage.
How Much Does Commercial Auto Cost?
On average, a commercial auto policy can cost $100–$209 per month, per vehicle (or $1,200–$2,500 per year per vehicle, depending on your payment plan).
Your total costs can vary based on several factors, like:
- Vehicle type and usage
- Value of the vehicle
- Type of business
- Location of business
- Driving and claim history
- Coverage limits
- Number of vehicles insured
Additional Coverage You May Need
Commercial auto insurance covers the vehicle, but your business, equipment, or employees may require coverage too! Most small business owners opt for general liability insurance and add on or bundle other coverages for maximum protection:
- General Liability
- Professional Liability (Errors & Omissions)
- Product Liability
- Inland Marine (Tools and Equipment)
- Workers Compensation
- Hired/Non-Owned Auto
- Property Insurance
- Liquor Liability
How to Apply for Commercial Auto Liability Insurance
Apply online for a free, quick quote from Insurance Canopy! Easily bundle other liability and small business coverages with your commercial auto policy, and work one-on-one with a licensed agent to customize a plan to your needs.
Here’s how to get started on your quote today:
- Start an online application
- Provide the required information about you and your business
- Receive a custom quote from an agent within 24 hours
Questions? Our agents can help! Call 888.600.0894 or email info@insurancecanopy.com to speak with a member of our U.S.-based team.
Why Small Businesses Love Insurance Canopy
From starting up to scaling up, Insurance Canopy makes it easy to protect what you’ve built with:
- Simple, quick quotes
- Customizable coverage
- Specialized solutions
- Affordable policies
- Licensed agent support
-
Thank you so much
Steve Monreal
July 11, 2025I needed a portable policy as a yoga instructor. I found this company in an online search. Called and got details from them, was quite surprised at how affordable... Read More
Jamie Calaway
July 4, 2025Very easy & quick experience. We got insurance in no time with no hassle. Thank you!
Robert Earnest
July 4, 2025 -
I am glad I went with them. I needed a last minute policy to cover an event I was doing and they had exactly what I needed at a... Read More
Deloris Pacheco
June 27, 2025great little company, with fair pricing, for entertainers who need occasional coverage. however, they have long hold times to speak to an agent, and their customer service left a little something... Read More
Gretje Angell
June 18, 2025What a lovely experience I had with Insurance Canopy! Easy and fast sign up, great policy, matches my needs as a self-employed business owner. Highly recommend!
Masha Rusanov
June 18, 2025 -
Needed DJ insurance for Memorial Day weekend & was squared away within an hour for 2 events! Highly recommend
Jay Solis
June 18, 2025Very user friendly platform. Multiple options. Very good pricing. Needed liability insurance in order to secure a very good paying event for my solo tribute show. Was set up within... Read More
Michael Riley
June 18, 2025Would have 5 starts, but not right now. This is the first time I have ever had to pay for an additional insured ever in 20 year's. They either have... Read More
Anthony Burgess
June 18, 2025 -
Representative Sarah was very helpful. Walked me through every step and not to mention the price even matched the service! Would recommend to any and everyone.
queenkiam
June 18, 2025Very easy to renew policy
Elyce Nissinoff
June 18, 2025They can help.you with the right Insurance you need, and the lowest price
Alvaro Baltazar
May 18, 2025 -
Provides event insurance at a very reasonable price compared to other companies. Easy to purchase and provide proof of insurance.
David Fox
May 18, 2025Affordable for dance & yoga folk. Thumbs up!
Maia Claire
May 18, 2025Extremely affordable event insurance and an easy to work with system and team that will advise you every step of the way!
Ishan Arvin
May 18, 2025 -
everything is excellent
Radames Martinez
May 18, 2025I'm a new customer/policy holder. Super easy online application and policy setup. Very competitive rates. Certificate of insurance generated and received (PDF) immediately once method of payment established. Great service... Read More
Matthew Terry
April 18, 2025For me, this application process was super efficient and easy to navigate on line. That goes a long way!
Holly Mulder
April 18, 2025 -
Affordable. Thank you.
Ana Young
April 18, 2025I have not had any issues over the years with Insurance Canopy, with canceling and renewing, I have found the cost of coverage in line or better then some. I have... Read More
John Corkins
March 18, 2025Canopy insurance has covered my DJ business for several years and I am totally satisfied with their services. Thank you DjVic🎧
DjVic Universal Sounds
March 18, 2025 -
I have them for 3 years this year seems price went up . I have never had to use them for a claim so really couldn’t tell you about that!
Denice Lapointe
February 18, 2025Great for Event Insurance - most affordable
Gaby Nobrega
February 18, 2025I was feeling overwhelmed with the specifications needed for my insurance coverage. I was offered friendly, quick and clear assistance. Through Canopy and Rey's help I was able to obtain... Read More
ESPIE QUINTERO
February 18, 2025 -
TLJ's Mobile Mixology, LLC had been insured with Insurance Canopy since it's inception and we have no complaints.
Tenisha J.
February 4, 2025Knowledgeable, kind, attentive and professional. She helped me to feel comfortable, well taken good care of and get the service possible.
Ed Levitt
February 3, 2025As a Massage Therapist, I was not aware until a few years ago that I did not have to be part of an Organization to get my liability insurance! I... Read More
Kristie Williams
January 30, 2025 -
This insurance has helped me secure events with my corporate and local government clients. They have great customer service and are always willing to help.
Tony Felix
January 23, 2025Representative was clear & concise in explaining specifics of the policy. Cost of policy very reasonable.
John B
January 16, 2025I’m very happy with my purchase of liability insurance for a one-off event. I was even able to edit the policy after it had been issued with the help of... Read More
jay gedeon
January 6, 2025
-
Thank you so much
July 11, 2025 -
Very easy & quick experience. We got insurance in no time with no hassle. Thank you!
Robert Earnest
July 4, 2025 -
I needed a portable policy as a yoga instructor. I found this company in an online search. Called and got details from them, was quite surprised at how affordable... Read More
Jamie Calaway
July 4, 2025 -
I am glad I went with them. I needed a last minute policy to cover an event I was doing and they had exactly what I needed at a... Read More
Deloris Pacheco
June 27, 2025 -
great little company, with fair pricing, for entertainers who need occasional coverage. however, they have long hold times to speak to an agent, and their customer service left a little something... Read More
Gretje Angell
June 18, 2025 -
Representative Sarah was very helpful. Walked me through every step and not to mention the price even matched the service! Would recommend to any and everyone.
queenkiam
June 18, 2025 -
What a lovely experience I had with Insurance Canopy! Easy and fast sign up, great policy, matches my needs as a self-employed business owner. Highly recommend!
Masha Rusanov
June 18, 2025 -
Needed DJ insurance for Memorial Day weekend & was squared away within an hour for 2 events! Highly recommend
Jay Solis
June 18, 2025 -
Very user friendly platform. Multiple options. Very good pricing. Needed liability insurance in order to secure a very good paying event for my solo tribute show. Was set up within... Read More
Michael Riley
June 18, 2025 -
Would have 5 starts, but not right now. This is the first time I have ever had to pay for an additional insured ever in 20 year's. They either have... Read More
Anthony Burgess
June 18, 2025
FAQs About Commercial Auto Insurance
What’s the Difference Between Personal and Commercial Car Insurance?
The difference between personal and commercial car insurance is:
- A personal policy covers everyday driving
- A commercial policy covers vehicles used for business
Do I Need Commercial Auto Insurance if I Use My Personal Vehicle for Work Purposes?
Yes, you need commercial auto insurance if you use your personal vehicle for work purposes.
Personal policies usually exclude work-related use, such as deliveries, client visits, or job site travel. Additionally, most states legally require businesses to carry commercial auto insurance when using vehicles for work.
Do I Need Commercial Auto If I Use My Car For Deliveries or Rideshare?
Yes, you need commercial auto if you use your car for deliveries or rideshare.
Many personal policies exclude coverage the moment you use your vehicle for commercial purposes, like Uber, Lyft, Amazon, or even local pizza deliveries. This means you could be left paying out of pocket after an accident without commercial auto coverage.
Does Commercial Car Insurance Cover Personal Use of the Vehicle?
Your commercial car insurance may cover personal use of the vehicle, but it depends on the vehicle’s primary functions and the policy exclusions:
- If you own a car that you use for personal use and for your catering company, it may be covered
- If you have a car that’s strictly used for work and is owned by the business, personal use may be excluded
Some policies allow for personal use of a work vehicle, like stopping for groceries on the way home from a job, while others specifically exclude this. If you or your employees regularly use a company vehicle outside of work hours, it’s important to talk to a licensed insurance agent first!
Do You Offer Trailer Insurance, Too?
Yes, Insurance Canopy offers commercial trailer insurance. It’s vital to add trailer coverage to your commercial auto policy for liability and physical damage on the trailer.
Can I Add Multiple Drivers to a Commercial Auto Policy?
Yes, you can add multiple drivers to a commercial auto policy. This can include:
- Employees who drive company cars or trucks
- Business partners using company cars for work purposes
- Contractors or delivery drivers using insured vehicles
Most policies require listing employees or individuals who drive your business vehicles regularly.
Is Commercial Truck Insurance Different from Commercial Auto?
Yes, commercial truck insurance is different from commercial auto. It’s specialized for heavy trucks, like semis, dump trucks, or cement mixers, and is designed to meet the unique needs of trucking operations.
While Insurance Canopy doesn’t currently offer commercial truck coverage, our agents can help you find and customize a quote through our trusted partners.
Commercial Auto Resources
Chris Van Leeuwen | VP of Agency Development
Chris Van Leeuwen is the VP of Agency Development for Insurance Canopy. He has held the prestigious Certified Insurance Counselor (CIC) designation since 1996.
Because he strongly believes in the importance of helping business owners understand their insurance coverage, Chris uses his wealth of experience to offer insights to small business owners across the country who are looking to navigate business liability insurance.
Chris Van Leeuwen is the VP of Agency Development for Insurance Canopy. He has held the prestigious Certified Insurance Counselor (CIC) designation since 1996.
Because he strongly believes in the importance of helping business owners understand their insurance coverage, Chris uses his wealth of experience to offer insights to small business owners across the country who are looking to navigate business liability insurance.
Kyle Jude | Program Manager
Kyle Jude is the Program Manager for Insurance Canopy. As a dedicated program manager with 10+ years of experience in the insurance industry, Kyle offers insight into different coverages for small business owners who are looking to navigate business liability insurance.
Kyle Jude is the Program Manager for Insurance Canopy. As a dedicated program manager with 10+ years of experience in the insurance industry, Kyle offers insight into different coverages for small business owners who are looking to navigate business liability insurance.