Commercial Auto
Protection for vehicles that keep your business moving.
EMD INSURANCE RESOURCES
What Is Commercial Auto Insurance?
Commercial auto insurance helps businesses manage certain financial risks associated with vehicles used in their operations. Depending on the policy, coverage may include liability for injuries or property damage caused to others, damage to covered vehicles, and additional protections.
Auto Liability
Helps protect your business against covered claims for bodily injury or property damage arising from the ownership, maintenance, or use of insured vehicles. Coverage may also include legal defense, subject to policy terms.
Collision Coverage
May help pay for covered damage to an insured vehicle resulting from a collision with another vehicle or object, or from overturning, subject to the applicable deductible.
Comprehensive Coverage
May help cover certain non-collision losses involving insured vehicles, such as theft, vandalism, fire, or weather-related damage, subject to policy terms and deductibles.
Hired Auto Liability
May provide liability protection for certain vehicles your business rents, hires, or borrows for business purposes. Physical damage coverage for hired vehicles generally requires separate consideration.
Non-Owned Auto Liability
May help protect your business against covered liability claims involving certain vehicles it does not own, such as an employee's personal vehicle used for company business. It generally does not cover physical damage to that employee's vehicle.
Additional Auto Coverages
Depending on the policy and state, options may include uninsured or underinsured motorist coverage, medical payments, personal injury protection, towing, or rental reimbursement. Availability and requirements vary.
KNOW THE LIMITS
What Commercial Auto Typically Does Not Cover
Commercial auto insurance is an important protection for businesses that use vehicles, but it does not cover every exposure. Understanding common exclusions and limitations can help identify where additional coverage may be needed.
Tools, Equipment & Cargo
Commercial auto physical damage coverage generally protects covered vehicles, not tools, equipment, inventory, or cargo transported inside them. Inland Marine or other specialized coverage may be needed for these items.
Employee Work-Related Injuries
Commercial auto liability generally excludes bodily injury to employees arising out of and in the course of employment. Workers' Compensation and Employers Liability coverage may address certain work-related injuries, subject to policy terms and applicable law.
Damage to Employee-Owned Vehicles
Non-owned auto liability generally protects the business against certain liability claims. It does not automatically pay to repair an employee's personal vehicle after an accident.
Mechanical Breakdown & Wear
Routine maintenance, normal wear and tear, and mechanical breakdown are generally not covered under standard commercial auto physical damage coverage.
Professional Errors or Faulty Work
Commercial auto insurance is not a substitute for Professional Liability or General Liability coverage. Claims arising from professional services, defective workmanship, or other non-auto business operations may require different policies.
Excluded Vehicles or Uses
Coverage depends on the policy's covered auto designations, exclusions, endorsements, and conditions. Certain vehicle types, uses, or operations may require specialized insurance arrangements.
EXPLORE YOUR COVERAGE
Not Sure What Other Coverage Your Business May Need?
Have an Insurance Question?
Resources are a great place to start. When you're ready to discuss your specific insurance needs, EMD Insurance Solutions is here to help.