Does Commercial Auto Insurance Cover the Personal Use of Vehicles?

It's common for businesses to carry commercial auto insurance if the work involves travel. Companies involved with product deliveries or transporting service equipment need this coverage. However, will commercial auto insurance also cover the personal use of a company car? Let’s dive into the details of both insurance policies to understand this.

Commercial Auto Insurance

Businesses that own at least one vehicle need to cover it with commercial auto insurance. A company that owns a fleet of vehicles can get a discount on commercial auto insurance rates through some providers. Getting the right coverage will ensure that your company is financially protected if someone files a claim about an employee's driving behavior.

Commercial Vehicle Insurance Vs. Hired and Non-Owned Auto Liability

It's important for you to be clear about whom all are covered under your commercial auto insurance plan. As much as it would be convenient for employees who use their own vehicles for work purposes to be covered, insurers usually won't mix personal and commercial coverage under the same policy.

There may be certain exceptions for drivers to use commercial vehicles for limited personal use. Under some plans, your employees may be covered by your commercial auto plan if you provide them with a company-owned vehicle to take home.

In order to cover your employees who use their own vehicles, you need a policy extension called Hired and Non-Owned Auto Liability coverage. This extension can be added to a Business Owners Policy (BOP) or a Commercial General Liability (CGL) plan.

Who Needs Commercial Auto Insurance?

The list of industries that widely use commercial auto insurance is long. Service contractors often use trucks to haul equipment to a work site. Restaurants use business-owned vehicles for food deliveries. IT specialists meet with clients to check their computer networking. Many freelance professionals, such as consultants and photographers, use business-owned vehicles to meet with their clients as well. Other professionals that use commercial vehicles include retailers, wholesalers, corporate trainers, fitness coaches, and distributors.

Cover Your Vehicles with Commercial Auto Insurance with Amity Insurance Group

If your business owns a vehicle, you'll need commercial auto insurance, as required by law across all states. We can help you learn the many coverage options available to you based on the size of your fleet and vehicle types. Contact us at Amity Insurance Group for more information on commercial auto insurance.