If your business uses vehicles — for deliveries, service calls, transporting equipment, or moving employees — you need commercial auto insurance. Personal auto policies do not cover vehicles used for business purposes. Here’s what commercial auto covers and why it matters.
Personal Auto vs. Commercial Auto
Personal auto insurance is designed for personal use. If you or your employee is involved in an accident while driving for business purposes — making a delivery, transporting clients, or traveling between job sites — a personal auto policy may deny the claim entirely. Commercial auto insurance covers vehicles used for business operations, with limits appropriate for business liability exposure.
What Commercial Auto Covers
Commercial auto insurance covers liability for bodily injury and property damage caused by your vehicles, medical payments for you and your passengers, physical damage to your vehicles (collision and comprehensive), and in some cases, hired and non-owned auto liability for vehicles you rent or employees drive their own cars for business purposes.
Hired and Non-Owned Auto (HNOA)
If your employees use their personal vehicles for business errands — making deliveries, running to the bank, picking up supplies — you face hired and non-owned auto liability. HNOA coverage protects your business when an employee’s personal auto policy is exhausted or doesn’t apply to the business use. This coverage is often overlooked but critically important.
Fleet Insurance for Multiple Vehicles
Businesses with multiple vehicles can often purchase fleet insurance, which covers all vehicles under a single policy. Fleet policies are typically more efficient to manage and may offer cost advantages compared to insuring each vehicle separately. Proper vehicle scheduling — making sure all vehicles are listed on your policy — is essential to maintaining full coverage.
Get the Right Commercial Auto Coverage
Commercial auto premiums are based on vehicle type, driver records, business use, and radius of operation. At Bozzuto Group, we work with commercial auto carriers across multiple industries — including specialty carriers for cannabis transport and logistics operations. Contact us to review your current coverage.