Commercial auto insurance covers liability and physical damage for vehicles used in business operations. Coverage extends to owned autos, hired autos (rented or leased), and non-owned autos (employee-owned vehicles used for business). Liability coverage pays for bodily injury and property damage caused by business vehicles. Physical damage coverage includes comprehensive (theft, vandalism, weather) and collision coverage.
Any business that owns, leases, or uses vehicles for business purposes. This includes trucking and transportation companies, delivery services, construction contractors, sales organizations, and any business providing company vehicles. Even businesses without owned vehicles need hired and non-owned auto coverage to protect against liability from employees using personal vehicles for business errands.
Commercial auto policies can be written for individual vehicles or as fleet policies for 5+ vehicles. Fleet programs offer scheduling flexibility, blanket coverage, and often better pricing. Telematics and GPS programs can reduce premiums through monitored driver behavior. Motor Carrier Act (MCA) endorsements are required for interstate trucking operations and carry mandatory $750K-$5M minimum liability limits.
Commercial auto liability limits typically range from $1M to $5M combined single limit (CSL), with higher limits available through excess/umbrella policies. Physical damage deductibles range from $1K to $10K. Fleet programs with 50+ vehicles may qualify for large deductible or self-insured retention structures. Premium is based on vehicle types, driver records, territory, and mileage.
A company delivery truck was involved in a multi-vehicle accident causing serious injuries to another driver. The commercial auto policy provided $1M in liability coverage for the bodily injury claim, $85K for the other vehicle's property damage, and $22K for collision repair to the company truck. An umbrella policy provided an additional $2M when the injury claim exceeded the auto limit.