Commercial auto insurance is coverage designed for vehicles used in business operations. It protects your business if one of your vehicles is involved in an accident, causes injury or property damage, or is damaged by theft, weather, or other covered events.
This policy applies to:
- Cars
- Pickup trucks
- Vans
- Box trucks
- Service vehicles
- Utility trucks
- Trailers (depending on usage and state rules)
Any vehicle used for business—whether owned by the company or used by employees for work purposes—may require commercial auto insurance.
Why Businesses Need Commercial Auto Insurance
Personal auto policies usually will most likely not cover accidents that happen while the vehicle is being used for business. That includes:
- Delivering products
- Transporting tools or equipment
- Hauling materials
- Transporting Employees
- A Vehicle Owned by a Business
Without commercial auto coverage, your business could be responsible for:
- Repairing or replacing the vehicle
- Lawsuits from injured parties
- Medical costs
- Property damage
- Lost business income if the vehicle is essential to operations
Commercial auto insurance helps protect your business financially and legally.
What Commercial Auto Insurance Covers
Here are the major coverages included in most commercial auto policies:
1. Liability Coverage
Covers injuries or property damage your business causes in an at-fault accident.
Includes:
- Bodily Injury Liability
- Property Damage Liability
- Legal defense costs
This is required in every state and is the foundation of any commercial auto policy.
2. Physical Damage Coverage
Protects your business vehicles from damage, regardless of who is at fault.
Includes:
- Collision: Damage from hitting another vehicle or object
- Comprehensive: Damage from hail, theft, vandalism, fire, falling objects, and other non-collision events
3. Medical Payments / Personal Injury Protection (PIP)
Helps pay medical costs for the driver and passengers in the insured vehicle. Requirements vary by state.
4. Uninsured / Underinsured Motorist Coverage
Protects your business if another driver causes an accident and doesn’t have enough insurance.
5. Hired & Non-Owned Auto Liability
Covers vehicles your business does not own:
- Employee personal vehicles used for business
- Rental or leased vehicles used temporarily
Example:
A team member runs a business errand in their own car and causes an accident. Your business could be pulled into the lawsuit. Hired & Non-Owned coverage helps protect you.
6. Optional Coverages
Depending on your business needs, you can add:
- Roadside assistance
- Rental reimbursement
- Trailer interchange coverage
- Custom equipment/aftermarket equipment coverage
- Towing coverage
Who Needs Commercial Auto Insurance?
You likely need commercial auto insurance if your business:
- Owns vehicles titled in the business name
- Uses personal vehicles to complete work tasks
- Delivers products, food, or equipment
- Travels to job sites
- Uses vehicles to transport clients or employees
- Operates service vehicles (plumbers, electricians, contractors, etc.)
- Runs a fleet of cars, vans, or trucks
Even small businesses—retail shops, landscapers, real estate agents, contractors, and home-based businesses—often need commercial auto coverage.
How Commercial Auto Premiums Are Determined
Insurance companies look at several factors:
- Type of vehicle (sedan vs. heavy truck)
- Vehicle use (service work, delivery, sales, etc.)
- Driving records of employees
- Number of vehicles
- Business location
- Claims history
- Coverage limits selected
Safer drivers and well-maintained vehicles help keep premiums more predictable.
Common Mistakes Businesses Make
- Relying on personal auto insurance for work driving
- Not listing all drivers who use the vehicles
- Underinsuring vehicles with custom tools or equipment
- Skipping hired & non-owned coverage
- Not updating the policy as the business grows
These mistakes often show up only after a claim—when it’s too late to fix them.
Why Work With Ameriguard Insurance?
As an independent insurance agency, we help Minnesota businesses find the right commercial auto coverage at the right value.
Our team helps you:
- Review your current coverage for gaps
- Compare multiple insurance companies
- Identify risks unique to your business
- Understand your policy in plain language
- Protect your business from costly auto-related claims
Whether you have one vehicle or a fleet, we’ll help you build a policy that fits how you operate.
Need a Commercial Auto Insurance Quote?
If your business uses vehicles—even occasionally—it’s important to have the right commercial auto coverage in place.
Contact Ameriguard Insurance today 763-767-0522 for a straightforward review and a customized quote to protect your business on the road.