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Why You Need Commercial Auto Insurance

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cars at a stoplight

You have liability insurance for your business. You have insurance for your car. If you use your car for business, then, you should be good to go, right? Let’s pump the breaks a bit. While the insurance you may already carry certain protections, it’s likely leaving an automobile-sized gap in your coverage, as most personal policies don’t have protection for commercial auto use. This is where commercial auto insurance becomes necessary.

Why Is Commercial Auto Insurance Necessary?

In the United States alone, more than 2 million people each year are either injured or killed in car accidents. The monetary cost of these crashes per year averages out to be $230.6 billion.

Any time you or one of your employees is on the road, they’re at risk. Unfortunately, the auto insurance policy you already have may not cover you when using your vehicle for business operations. This requires a separate commercial auto insurance policy.

What Does Commercial Auto Insurance Cover?

Your commercial auto insurance policy offers coverage for the main gaps found in your private auto policy. For example, here are just a few of the coverages available with a commercial auto policy purchased through Insurance Canopy:

  • Auto Liability—Bodily Injury and Property Damage
    • This covers vehicles used for your business operations, including vehicles you may have purchased during the policy period
  • Uninsured/Underinsured Motorist
    • This coverage protects you if you’re involved in an accident with someone who does not have insurance or someone whose coverage is insufficient to cover the costs of an accident. It can pay medical bills, lost wages, and damages for pain and suffering incurred. This coverage also protects you if you are struck by a hit-and-run driver.
  • Hired Auto
    • This covers non-owned, unlisted vehicles the insured has leased, hired, rented, or borrowed for business purposes.
  • Employer’s Non-ownership Liability
    • This covers employees using their own vehicles (that may not be listed on your policy) for business operations
  • Roadside Assistance and Rental Reimbursement

What Types of Vehicles Are Covered by Commercial Auto Insurance?

The answer to this question varies depending on which carrier you work with. Insurance Canopy represents Progressive, which offers more extensive coverage options than you’ll find with most carriers.

Often, you’ll find that hard-to-place business classes aren’t covered by commercial auto policies. With Insurance Canopy, this isn’t the case. For example, if your business is your vehicle; say, if you own a food truck, pest control service, or delivery vehicle, you’ll still be covered.

Not all vehicles are insured, however: ambulances, golf carts, and vehicles carrying explosives are not covered.

Get a Quote Online Today!

Every mile you drive without a commercial auto policy is one where you and your business are at risk. Get covered as soon as you can—fill out an application online today to get a quote and find out how much your commercial auto insurance policy will cost. This policy will give you and your employees peace of mind while they’re on the road and will make sure you have coverage when you need it.


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