Understanding Commercial Auto Coverage
Does your business need commercial auto insurance? Discover the differences between personal and commercial policies.
1. Personal vs. Commercial Auto Insurance
Personal auto policies typically exclude coverage for vehicles used for business purposes (other than commuting). If you or your employees use vehicles for tasks like delivering goods, transporting equipment, or visiting clients, you likely need a commercial auto policy.
2. What Does It Cover?
Commercial auto insurance provides liability coverage for bodily injury and property damage caused by your business vehicles. It can also include physical damage coverage (collision and comprehensive) to repair or replace your vehicles if they are damaged in an accident or by other events like theft or vandalism.
3. Hired and Non-Owned Auto Liability
If your employees use their own personal vehicles for business errands, or if your business rents vehicles, you need Hired and Non-Owned Auto (HNOA) liability coverage. This protects your business if an employee causes an accident while driving for work.
4. Higher Liability Limits
Commercial auto policies generally offer higher liability limits than personal policies. This is crucial because businesses are often targeted in lawsuits following accidents, and the financial impact can be devastating without adequate coverage.
Contact us to discuss your business vehicle usage and ensure you have the right commercial auto protection.
About the Author: Hoover Insurance Team
The Hoover Insurance Team brings decades of combined experience in the insurance industry, helping families and businesses across Washington navigate their coverage options. As independent brokers, we focus on education and personalized advice.
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