Personal auto policies usually exclude or restrict business use: hauling tools and materials, making deliveries, carrying employees, or driving a vehicle titled to the company. Commercial auto is built for those exposures and offers higher liability limits than most personal policies.
It also covers liability when employees drive their own cars or rentals for work errands — a gap many small businesses do not know they have.
What Commercial Auto typically covers
- Liability. Bodily injury and property damage you cause to others while driving for the business, including legal defense.
- Physical damage. Comprehensive and collision for your vehicles, including theft, vandalism, and storm damage.
- Medical payments / PIP. Medical costs for drivers and passengers, including state-required personal injury protection (for example, PIP in Florida).
- Uninsured / underinsured motorist. Protection when the at-fault driver has little or no insurance.
- Hired & non-owned auto (HNOA). Liability when employees use personal vehicles or rentals for business — available alone or added to a policy.
- Filings and add-ons. State and federal filings where required, rental reimbursement, towing, and permanently attached equipment coverage.
An HVAC technician rear-ends a car while driving to a service call in a company van. Commercial auto pays for the other driver’s injuries and car repairs, collision pays to fix the van, and inland marine covers the damaged gauges and tools in the back.
Businesses that commonly carry Commercial Auto
- Contractors and trades with work trucks or vans
- Landscapers pulling trailers and equipment
- Delivery, courier, and food-delivery operations
- Businesses with vehicles titled to the company
- Employers whose staff run errands in personal cars
- Small fleets and owner-operators
What it usually does not cover
- Injuries to your employees. On-the-job injuries to your own workers are covered by workers’ compensation, not auto liability.
- Tools and cargo. Tools and materials carried in the truck usually need inland marine coverage; for-hire cargo needs motor truck cargo coverage.
- Unlisted or excluded drivers. Carriers check motor vehicle records. Drivers who are excluded, or who do not meet guidelines, may not be covered.
- Personal use limits. Some policies restrict personal use of company vehicles or by family members.
- Racing and intentional damage. Standard exclusions apply, as on personal auto.
- Equipment that is not attached. Loose equipment and tools are not part of the vehicle unless scheduled.
Independent means we compare — not just quote one company
Commercial auto markets we can shop include Progressive, GEICO, Next, and Travelers, with availability varying by state, vehicle type, radius, and driver records.
Tips before you buy
- Have VINs, garaging addresses, driver names, dates of birth, and license numbers ready — carriers rate on them.
- Tell us how far vehicles travel and what they carry. Radius and use drive both price and eligibility.
- Add hired & non-owned auto even if the business owns no vehicles; an employee’s errand can still lead to a claim against the company.
- Higher liability limits are often inexpensive relative to the protection — and contracts may require $1 million combined single limit.
Coverage that pairs with Commercial Auto
General Liability
Third-party injury, property damage, and advertising injury claims — plus defense costs.
Learn moreTools & Equipment (Inland Marine)
Tools, equipment, and property on the move or at job sites.
Learn moreCommercial Umbrella
Extra liability limits above your GL, auto, and employers liability policies.
Learn moreWorkers’ Compensation
Medical bills and lost wages for employees hurt on the job — plus employers liability.
Learn morePopular with: Trucking, Hauling & Delivery · Contractors & Trades · Landscaping & Lawn Care · Restaurants & Food Service · All commercial coverage
Commercial Auto questions
Can I use my personal auto policy for my business truck?
Sometimes for light, incidental use, but many personal policies exclude business use like deliveries, hauling for pay, or vehicles titled to a business. If the truck is part of how you earn money, ask us to check — a denied claim is far more expensive than the right policy.
What is hired and non-owned auto insurance?
It covers your business’s liability when employees drive their own cars or rented vehicles for work. It does not cover damage to the employee’s car, which stays on their personal policy.
Do you insure box trucks and hotshot operations?
Often, yes — through commercial auto carriers that write these risks, depending on state, radius, and experience. See our trucking page for details and tell us about your operation.
Will an employee with tickets affect my rates?
Yes. Driver records are a major rating factor and some drivers may not qualify. We can help you set a driver standard before you hire.
Does commercial auto cover tools stolen from my truck?
Usually not. Tools and equipment need inland marine (tools & equipment) coverage.
We cover your assets
Let’s build the right commercial program
Tell us about your business once. We shop multiple carriers, explain the trade-offs in plain English, and handle certificates, audits, and renewals after you bind.
Educational only — not a policy, quote, or coverage guarantee. Coverage, eligibility, and carrier availability vary by state, class of business, and underwriting. Policy language controls. Talk with a licensed Asshield agent about your situation.