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What is Business Auto?

Also referred to as commercial auto, business auto insurance can be very straightforward (insuring vehicles your company owns) but also confusing (i.e. using personal vehicles for business). While many of the coverages are similar to that on a personal auto policy, the limits and conditions can be very different and may vary based on the use of the vehicle.

Short Version: if you use any vehicles for your business in any capacity then look into a business auto policy.

What's Covered?

Bodily Injury Liability

Helps pay for the medical expenses of other drivers if your vehicle was involved in an accident and at fault.

Property Damage Liability

Covers the damage caused by you or your employees to others property, for example the car one of your employees hit.

Comprehensive Coverage

Helps pay for damage to your vehicle from causes other than collision, such as theft, fire or natural disasters.

Collision Coverage

Covers the cost to fix or replace your business’s vehicle if you hit something like another car or pole.

Medical Payments

Pays for the medical expenses of you and your passengers in the event of an accident.

Uninsured/Underinsured Motorist

Helps pay for medical and repair expenses if the other driver lacks the insurance to do so.

Rental Car Coverage*

Helps pay for a rental vehicle while your damaged vehicle is being repaired due to a covered loss.

Personal Injury Protection (PIP)

Known as no-fault insurance, helps cover medical expenses, lost wages and funeral costs after an accident regardless of who is at fault.

Hired and Non-Owned Auto*

Provides your business liability coverage on vehicles you rent, lease or borrow or when employees use personal vehicles for company business.

Gap Insurance*

If your vehicle is totaled, gap insurance will help cover the difference between what your car is worth and what you owe as a lessee.

*Typically offered as optional coverages

Keep in Mind

While it may be tempting to keep a vehicle on a personal auto policy even when used for business, there are many scenarios where this can be problematic, such as:

  • Personal auto policies may deny coverage if a loss occurs during business usage.
  • Contractors are often required to carry Business Auto insurance to gain access to job sites.