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Do I Need Commercial Auto Insurance for My Business?

Do I Need Commercial Auto Insurance for My Business?

Businesses that employ commercial drivers are at risk every time their vehicles are on the road. It’s important to fully comprehend your commercial auto policy so you’re prepared if an accident does occur. Below are a few frequently asked questions to help you better understand commercial auto insurance.

Why is commercial auto insurance so important?

Commercial auto insurance is in place to protect your company’s commercial vehicles and to provide liability coverage protection for damage from auto accidents. Commercial auto insurance can help to reduce the financial burden from such incidents.

What does the typical commercial auto insurance policy cover?

Commercial auto insurance policies can provide coverage for:

  • Auto accident liability to help pay for damages in any accident that employees may cause, including repair costs for the other person’s vehicle

  • Physical damage, such as vandalism, to the company’s vehicles

  • Personal loss, such as uninsured motorists coverage and medical expense benefits not covered under workers’ compensation insurance

When you apply for a commercial auto policy, consider what kinds of vehicles your business uses. For each vehicle you want to insure, you’ll need to indicate whether it is:

  • Owned, hired (e.g., leased, rented, or borrowed), or non-owned (e.g., an employee’s vehicle)

  • A private passenger or commercial vehicle

  • Subject to minimum insurance requirements

Because each of these options requires underwriting approval, it is important to let your insurance company know whenever any changes are made to your business’s motor vehicle operations.

Coverage under a commercial auto policy often depends on the type of vehicle insured, the optional coverages selected, and other complexities. Speak to your agent for an understanding of what your policy covers.

Do I need commercial auto insurance for my business?

In many instances, personal auto policies exclude or limit coverage for accidents that occur while a driver is working. If your business has employees on the road for work purposes, commercial auto insurance can help to manage your risk. Consult a licensed insurance agent to see if your business would benefit from this type of coverage.

It’s important to be prepared in case an accident occurs on the job. Check with your agent regularly to be sure you have the appropriate coverage for your business.


The information and descriptions of coverage on this site are general in nature. The coverage afforded for a particular loss depends on the specific facts and the terms, exclusions, and limits of the actual policy. Nothing on this site alters the terms or conditions of any policy; the policy controls coverage. Coverage options, limits, discounts, deductibles, and other features are subject to underwriting criteria, state availability, and effective dates. Coverage provided and underwritten by NJM Insurance Company and its subsidiaries, 301 Sullivan Way, W. Trenton, NJ 08628.