If there’s one coverage business owners misunderstand more than anything else, it’s commercial auto. And it makes sense because people assume their personal auto policy covers everything.
Here’s the truth:
If a vehicle is being used for work, most personal auto policies won’t cover you the way you expect.
A few examples:
- Your employee drives their own car to drop off materials. They get into an accident. Their insurer may deny the claim because it was “business use.”
- You use your SUV to meet clients or haul supplies. If there is a claim, your personal insurer may decline the claim.
- You have a delivery vehicle titled personally, but it’s used for your company. That creates a coverage gap most people don’t realize exists.
Commercial auto isn’t expensive compared to the cost of one uncovered claim, especially now that repairs, medical bills, and lawsuits are all increasing.
It only takes one accident to show how complicated it can be.
If your business relies on vehicles in any way, it’s worth making sure you’re covered the right way.