Commercial Auto Insurance

What is the difference between personal and commercial auto insurance?

Personal auto covers vehicles used for everyday personal driving. Commercial auto covers vehicles used for business operations -- transporting goods, carrying equipment, driving to job sites, or any use tied to earning income. If a vehicle is registered to a business or used primarily for work, it needs a commercial policy.

Can I use my personal auto policy for business use?

Generally, no. Most personal auto policies exclude business use. If you are in an accident while using your vehicle for work and only have a personal policy, your claim could be denied. Always disclose the vehicle's intended use to your broker.

Do all my employees need to be listed as drivers?

Yes. Any employee who operates a company vehicle must be listed on the policy. Failing to disclose drivers is considered misrepresentation and can result in denied claims, voided policies, or coverage cancellation. If you have a fleet, blanket driver endorsements may be available.

What about employees using their own vehicles for work?

If employees use personal vehicles for company business (deliveries, client visits, etc.), their personal auto policy is primary. However, your business could still be held liable. Non-owned auto liability coverage on your commercial policy protects your business in these situations.

Are my tools and equipment covered under my commercial auto policy?

No. Your IRCA (auto policy) does not cover tools, equipment, or materials -- even if they are inside your vehicle. If your tools are stolen from your van or damaged at a job site, your auto insurer will not pay for them. To protect your tools and equipment, you need a separate Contractor's Equipment or Inland Marine policy. This is one of the most common gaps we see with contractors. Ask your broker about adding this coverage.

How are commercial auto rates determined?

Rates depend on the type of vehicle, its use (local vs. long-haul), the goods being transported, driving records of all listed drivers, claims history, and the coverage limits selected. A broker can help you find the right balance of coverage and cost.

Can I insure a fleet of vehicles on one policy?

Yes. Fleet policies are designed for businesses with multiple vehicles and often come with administrative advantages and potential volume discounts. Contact us to discuss your fleet size and requirements.