Business Auto Insurance
Obtain a personalized quote for commercial auto insurance tailored to your business needs now.
Why is business auto insurance important?
If your company owns a vehicle, it is likely that you'll need business auto insurance. Virtually every state requires business auto insurance coverage for vehicles owned by the businesses.
Business auto insurance serves as a financial safeguard in situations where you or an employee requires medical treatment or incurs legal expenses due to a car accident. Without business vehicle insurance, your business would bear the responsibility for any medical bills and legal fees, which can become financially burdensome.
Even in cases where business auto insurance coverage is not compulsory, opting for it remains a prudent decision. Without such coverage, you might find yourself liable for substantial costs, including thousands of dollars in medical bills and other expenses.
What does business auto insurance cover?
Busines auto insurance helps covering medical payments and property damage arising from an accident. This coverage encompasses legal expenses in case of a lawsuit. Additionally, a policy may extend to cover vehicle theft, vandalism, and various other losses and damages.
Business auto insurance coverage includes:
- Auto accident liability
- Medical payment
- Physical damage and collision
- Accidents involving uninsured motorists
Who needs business auto insurance?
Business auto insurance is advantageous for numerous industries that rely on business vehicles. It is tailored to meet the needs of both businesses and independent contractors who require a company vehicle for their operational needs.
Nevertheless, certain professions have a higher frequency of requiring commercial auto coverage options, including:
- Construction and installation
- Consulting
- Cleaning
- Landscaping
Frequently asked questions
Business-owned vehicles need business auto insurance. Learn about obtaining a policy, the specific coverage required, and get answers to other commonly asked questions.
How do I know if I need business auto insurance?
Determining the need of business auto insurance involves considering various factors. If your business owns the vehicle, it’s probable that you require this coverage. Additionally, researching the laws in your state is crucial to ensure compliance. Explore further on acquiring the appropriate auto insurance for your vehicle.
Is business auto insurance required?
Business auto insurance is required by law in every state, except for New Hampshire and Virginia. Even in states where legal requirements do not exist, drivers may still be held accountable for damages.
<br><br>
For vehicles utilized but not owned by your business, like employee vehicles or leased trucks, coverage can be provided by hired and non-owned auto insurance. Although this policy is not legally mandated, personal auto insurance policies often exclude business use, making this coverage vital for businesses relying on non-owned vehicles.
What does business auto insurance cover?
Business auto insurance offers financial protection for accidents involving vehicles owned by your business, covering expenses such as medical bills, property damage, and legal fees in case of a lawsuit.
<br><br>
Certain policies extend coverage to include protection against vehicle theft, vandalism, and various types of damage. You have the flexibility to enhance your policy by adding different types of coverage, including collision or comprehensive coverage.
<br><br>
Another valuable consideration is personal injury protection (PIP) insurance, an add-on to your commercial auto policy that provides medical payments (MedPay) coverage after a car accident, regardless of fault. The necessity for PIP coverage is subject to state laws.
<br><br>
It’s important to note that business auto insurance coverage specifically applies to “automobiles,” defined as vehicles primarily used for travel on public roads. Machinery and earthmoving equipment, though capable of being driven, and primarily designed for off-road use, fall under the category of “mobile equipment.”
<br><br>
Businesses seeking coverage for these types of vehicles may need to include a mobile equipment endorsement in their auto insurance policy.
How much commercial auto insurance do I need?
The amount of business auto insurance you need is determined by the minimum requirements set by each state. This typically includes specified levels of bodily injury liability coverage, property damage liability coverage, and uninsured motorist coverage.
<br><br>
You have the option to acquire the minimum coverage to fulfill state mandates or choose higher coverage limits if you prefer the ability to make larger claims on your policy.
<br><br>
Implementing strategies like enhancing safety practices and opting for lower coverage limits are ways to potentially reduce your commercial auto premium. Additionally, consulting with an insurance agent can be valuable in addressing your business insurance requirements and identifying affordable car insurance policies.
Do rideshare and delivery drivers need business auto insurance?
Rideshare and delivery drivers encounter distinct risks that can complicate the search for adequate coverage.
<br><br>
As of now, Insureon does not offer coverage for this type of driving, unless you are an employee of a restaurant, grocery store, or a similar business. In such instances, the employer may opt to purchase hired and non-owned auto insurance to safeguard employees from liability.
<br><br>
For individuals working as independent contractors for rideshare or delivery companies, it is advisable to consult with their personal auto insurance agent to explore the possibility of extending coverage.
Do independent contractors need commercial auto insurance?
Commercial auto insurance for independent contractors offers protection in the event of an accident while operating a business vehicle.
<br><br>
Irrespective of self-employment status, every state mandates this coverage for vehicles registered to a business or those capable of compensating someone in case of an auto accident.
<br><br>
For self-employed individuals, personal auto insurance might not extend coverage when using their vehicle for business purposes. In such cases, considering hired and non-owned auto insurance (HNOA) is advisable. Even if not legally required, independent contractors might opt for this coverage to guard against potential lawsuits.
