When most small business owners think about insurance, commercial auto coverage isn’t always top of mind. It’s natural to assume that only certain types of businesses – like trucking companies or delivery services – really need it. But the reality is, if you or your employees use a vehicle for business purposes, there’s a good chance you need commercial auto insurance.

Still unsure? Here’s what you need to know to determine if your business is potentially at risk and how you can protect it.

Do You Use Vehicles for Business?

Here’s a simple litmus test for whether your business might require commercial auto coverage. Think about how vehicles are being used to sustain or grow your business. Do you or your employees use a car, van, or truck for any of the following reasons?

• Transporting goods, tools, or equipment (e.g., catering services, construction materials, flower deliveries).

• Driving to client sites or job locations (plumbers, landscapers, consultants, etc.).

• Carrying passengers for business purposes (rideshare, shuttle services, etc.).

• Exclusive use of a vehicle for business logistics (mobile services like pet grooming or cleaning).

If any of the above scenarios apply, this is your sign to consider commercial auto insurance. Personal auto insurance policies are highly unlikely to cover you if an accident occurs while the vehicle is being used for business purposes.

Employee-Owned Vehicle Use for Business

Here’s another scenario that often catches small business owners by surprise – what happens when your employees occasionally use their personal cars for work?

For example, what if your staff delivers products to clients, picks up supplies, or runs errands for the business in their own vehicles? You probably think their personal auto insurance has it covered. Unfortunately, that’s not always true.

Employee-owned vehicles used for business purposes often require a different type of coverage, one that isn’t included in standard personal auto insurance or traditional commercial auto policies. This is where hired and non-owned auto insurance (HNOA) comes into play - it may protect your business from liability if an employee’s car is involved in an accident while being used for work.

Given how unexpected this situation can be, many small business owners overlook this need, only to face significant challenges if something goes wrong.

Why Commercial Auto Insurance Matters

Failing to have the right coverage in place can lead to serious financial and operational risks. Here’s what commercial auto insurance can protect against:

• Vehicle Damage: Covers repairs or replacements if a covered vehicle is damaged due to accidents, weather, theft, or vandalism.

• Liability Coverage: Handles medical expenses, legal fees, and settlements if your business vehicle causes injury or property damage to others.

• Uninsured/Underinsured Protection: Covers the costs if your business vehicle is hit by a driver who doesn’t have enough insurance.

Even if your business’s use of vehicles is infrequent, the potential risks far outweigh the cost of skipping coverage.

Don’t leave your business exposed. Let our team help you learn more about your commercial auto risks and the available coverage options today.