Commercial auto insurance is an essential part of a business’s financial protection. Understanding who is covered under the policy is essential to protect those driving company vehicles.

Generally, commercial auto policies may cover the named drivers while behind the wheel of a covered vehicle, business owners while driving the insured vehicle for business purposes, employees of the business while driving an insured vehicle and volunteers driving an insured vehicle for the benefit of the company.

It is important to check your policy documents to ensure all drivers operating company vehicles are adequately insured.

How to Find Out Who Is Insured

The policy documents contain the Business Auto Coverage Form outlining the individuals covered under a commercial auto policy. Refer to the “Who Is an Insured” section under Section II to identify the insured parties.

The following are the three categories of drivers insured by the policy:

• The named insured or the company listed on the policy
• Permissive users who have been granted permission to drive a covered vehicle by the insured person or company
• Omnibus insureds who could be held liable for an accident caused by a permissive user or named insured

If you have doubts about who is covered under your commercial auto insurance policy, contact your agent.

Is Commercial Auto Insurance Required?

Often, businesses that use vehicles for daily operations are required to have commercial auto insurance. States mandate a minimum level of liability coverage to cover a company’s legal responsibility in the event of an at-fault accident.

Agents may suggest additional coverage, such as the following:

• Collision and comprehensive insurance can provide financial support in repairing or replacing a company vehicle following a covered accident or event.
• Uninsured/underinsured motorist coverage can cover costs associated with damages to a company vehicle after an accident with a driver who doesn’t have appropriate liability insurance coverage.
• Hired and non-owned auto (HNOA) insurance can offer protection for business-related cars that the company does not own, including borrowed or leased vehicles.

Depending on the situation, agents may also propose other policies and endorsements such as medical payments (MedPay) coverage or personal injury protection (PIP), umbrella insurance, replacement cost vehicle coverage, rental car reimbursement, roadside assistance and inland marine insurance.

Getting Commercial Auto Insurance

Commercial auto insurance is a vital part of your business insurance strategies. Our experts are available to aid in designing a personalized insurance plan that fits your needs.

It’s important to note that this blog serves an informational and educational purpose only and is not comprehensive. It should not be viewed as legal advice. For more information, please contact your insurance professional.