Commercial Auto2020-10-28T13:46:02+00:00

Commercial Auto Insurance

Commercial auto insurance protects your business from legal claims of bodily injury or property damage that occur during the operation of a company vehicle. This insurance can pay for repairs, medical expenses, and legal fees that personal auto insurance won’t cover.

In most cases, a personal car insurance policy won’t cover accidents that occur when you’re driving a vehicle for business purposes. Commercial auto insurance is a type of small business insurance that can pay to repair damages to your vehicle or other vehicles when you’re involved in an accident. This is also a form of liability insurance, which can pay for medical expenses and legal fees if another driver sues you.

What Types of Businesses Need Commercial Auto Insurance?

Most Massachusetts businesses that have vehicles which are driven for work-related purposes need business auto insurance. This may include (but isn’t limited to):

  • Contractors who have company vehicles
  • Trucking companies
  • Ambulance companies or social service providers who provide transportation
  • Taxi-cab and limousine companies
  • Snow-plow companies and landscapers
  • Auto garages that have tow trucks
  • Restaurants that offer delivery services

Businesses like these are usually required to carry a commercial auto policy that meets the state’s minimum requirements. In many cases, businesses choose to purchase more coverage so that they are better protected.

What Coverages Does Commercial Auto Insurance Include?

The coverages included in commercial auto policies are frequently similar to those included in personal auto policies, although there may be some minor tweaks. Some of the coverages that might be included in a commercial auto policy are:

  • Bodily Injury Liability Coverage, which may cover injuries people outside of a company vehicle sustain in an accident
  • Property Damage Liability Coverage, which may cover damage that others’ property sustains in an accident
  • Combined Single Limit, which may combine the bodily injury liability and property damage liability into one joint limit (which is usually higher than either individual limit)
  • Personal Injury Coverage, which may cover injuries sustained by drivers and passengers in company vehicles
  • Comprehensive and Collision Coverage, which may cover damage sustained by company vehicles
  • Uninsured and Underinsured Motorist Coverage, which may cover accidents caused by other drivers who aren’t adequately insured
  • Loading and Unloading Liability Coverage, which may cover injuries sustained by non-employees during the loading or unloading of a vehicle

In addition to these coverages, there are many add-ons that insurers offer to enhance business auto policies’ protections. These add-ons vary from insurer to insurer. Some examples of ones that any given insurer might offer include:

  • A Broader “Who is an Insured?” Provision, which may extend certain liability protections to any subsidiary companies your business owns
  • Temporary Substitute and Leased Vehicles Coverage, which may cover other vehicles that are used while your business’s primary ones are being repaired
  • Personal Effects Coverage, which may cover personal effects drivers keep in company vehicles
  • Lease or Loan Gap Coverage, which may cover the difference between company vehicles’ fair market values and the balances on the vehicles’ leases or loans
  • Hired Automobile Coverage, which may extend property and liability coverage to vehicles your business rents
  • Non-Owned Automobile Liability Coverage, which may extend liability coverage to employees’ personal vehicles that they use for work-related purposes


Interested in learning more about a commercial auto policy for your business? At Knight-Dik Insurance, we’ll work with you to design coverage that protects your business from a variety of risks, unique to you. For a free insurance premium analysis, simply contact us here or call 800-286-6353.

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