What is commercial auto insurance for a small business?

Commercial auto insurance is coverage for vehicles you use for business purposes. Vehicles used strictly for personal activities would be covered under a personal auto policy. Also, leased vehicles or employee-owned vehicles used for business purposes require hired/non-owned coverage, which can be purchased under a general liability policy or business owners policy (BOP).

How much does commercial auto insurance cost on average?

Your commercial auto insurance cost will depend on factors like the type of vehicle, how it’s used, and the driving records of the people who will operate it, to name just a few. However, biBERK is able to offer insurance at up to 20% less than other insurance providers. For example, commuter/consultant use of smaller vehicles can cost $600 to $1,500 per vehicle per year. The cost to insure vehicles for for-hire trucking can be $5,000 to $15,000 per vehicle per year. Livery vehicles may cost $2,000 to $6,000 per vehicle per year to insure.

Is my business vehicle covered by my commercial auto policy when I’m using it for personal activities?

Commercial auto insurance can cover the cost of damages even if the vehicle is used for personal activities outside of its primary business use.

For damage caused by at-fault accidents, which drivers are covered by my small business auto insurance?

Your policy can cover your employees, family members, and others who have permission to drive your vehicles. People who do so on a regular basis should be noted on your policy.

Will my insurance cost increase if I’m involved in an accident in my covered vehicle?

Your current policy won't be affected, but your next term or renewal may be. Your policy is rewritten each time it expires. When that occurs, your driving record is a factor in determining your rate. That means your rate may go up, but an increase is not guaranteed just because of an accident.

Does my small business car insurance cover items stolen from my vehicle?

Your policy can cover the vehicle and anything permanently attached to it, like a truck bed tool box. However, in that example, the tools themselves are not covered. Contractors who transport tools can purchase coverage for them under a general liability policy or business owners policy (BOP). Businesses in the for-hire trucking industry can purchase cargo liability add-on coverage to insure the goods they haul.

If I’m pulling a trailer with a vehicle that’s covered under my policy, is the trailer automatically covered?

Not necessarily. Liability coverage is automatic for trailers under 2,000 pounds gross vehicle weight, but for theft or damage coverage, you have to add the trailer to your policy. Trailers 2,000 pounds or over must be added to your policy to have coverage.

What is combined single limit (CSL) versus split limit coverage?

Liability policies provide different maximum dollar amounts that the insurer will pay for different components of a claim. This is called a split limit. The components are typically bodily injury per person, bodily injury per accident, and property damage. A combined single limit policy states that the insurer will pay up to a certain dollar amount for the entire claim. It doesn’t matter whether all components of the claim are related to one person’s injuries, or whether there are multiple injured parties represented by the claim. The combined single limit is capped at the stated dollar amount either way for that claim.

Commercial Auto Insurance

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Being aware of what type of insurance a business needs is important, and deciding whether your business even requires a commercial auto insurance quote for a policy can be challenging. We can help you assess your needs and evaluate your options when it comes to insurance for commercial vehicles.

What is Commercial Auto Insurance?

Commercial auto liability insurance refers to vehicles used in conducting business, as opposed to those strictly for personal use. They are typically insured under a commercial auto insurance policy, which protects the assets of a company from claims. A commercial auto insurance policy has different coverages that are designed to address particular business needs.

What Vehicles are Covered by Small Business Car Insurance?

Small business auto insurance protects a wide range of vehicle types. Just about any kind of vehicle you drive or trailer you pull can be covered, including:

Cars
Limousines
Pickup trucks
Buses
Food trucks
Motorhomes
Truck tractors
Motorcycles
Emergency vehicles
Delivery/cargo vans
Tow trucks
Passenger vans
Box trucks
Flatbed trucks
Dump trucks
Dry van trailers
Refrigerated trailers

What Does Commercial Auto Insurance Cover?

Bodily Injury Liability Coverage

Business auto insurance coverage provides payment in cases of bodily injury or death resulting from an accident for which you are at fault. This may also include legal defense expenses depending on the type of business car insurance policy purchased.

Property Damage Liability Coverage

If your vehicle accidentally causes damage to another person’s vehicle or property, insurance for commercial vehicles can protect you. That can include legal defense expenses depending on the type of policy purchased.

Medical Payments, No-Fault, or Personal Injury Coverage

This coverage provides payment for any medical expenses that may arise due to an employee or a passenger traveling in your vehicle, regardless of who is at fault in an accident.

Uninsured Motorist Coverage

This coverage provides payment for any medical expenses, or in some cases property damage, that may have been caused by a hit-and-run driver or an uninsured driver. Underinsured motorist coverage (when the at-fault driver has insurance but not sufficient insurance to cover the damage caused) may also be included depending on the type of business car insurance policy you choose.

Comprehensive Physical Damage Coverage

This is coverage for vehicles or trailers on your policy for damage caused to them by something other than a car accident. Examples include damage resulting from theft, vandalism, flood, fire, and other specified hazards.

Collision Coverage

This is coverage for vehicles or trailers on your policy for damage caused to them by a collision with another vehicle or a single-car accident.

Who Should Consider Small Business Auto Insurance?

Any company that uses vehicles should have small business auto insurance to protect them, especially if they are registered to your business or you are in the for-hire transportation industry. We provide coverage for these kinds of businesses and many others:

Accountants
Architects and engineers
Bakeries
Business management consultants
Cleaning and janitorial companies
Contractors
Corporate trainers
Dog walkers and pet sitters
Electricians
Food service companies
Home inspectors
IT consultants
Landlords
Landscape companies
Personal trainers
Photographers and videographers
Restaurants
Retail businesses
Transportation companies
Trucking companies for hire
Wholesalers

Why Does Your Company Need Small Business Car Insurance?

Small business car insurance is a must for any company that uses vehicles in its work. If you don’t have proper commercial auto liability insurance coverage, you can end up paying for vehicle repairs, injuries, and other expenses out of pocket—costs that can be devastating to a small business.

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What is the Difference Between Commercial and Personal Auto Insurance?

Both commercial vehicle insurance policies and personal auto policies provide coverage for liability, collision, comprehensive, medical payments (or personal injury protection), and uninsured motorist exposures (sometimes underinsured motorist, too). However, a commercial auto insurance policy may be very different from your personal auto policy due to separate eligibility criteria, definitions, coverages, exclusions, and limits.

Why biBERK for Commercial Auto Insurance?

We’re the experts when it comes to insuring small businesses.

Save Time

Get a quote entirely online or speak with one of our insurance experts right away for help getting a quote, buying a policy, or answering any questions you may have.

Save Money

We insure your small business directly, without a middleman or insurance broker, so we pass that savings on to you—up to 20% less than policies with other insurance companies.

Experienced

We're part of Warren Buffett's Berkshire Hathaway Insurance Group with millions of satisfied customers, more than 75 years of insurance experience, and $38 billion in paid claims in 2020.

What’s not Covered by Small Business Auto Insurance?

Small business auto insurance provides valuable financial protection and peace of mind in many ways. However, there are certain types of incidents that aren’t covered by your business car insurance policy. Some of these exclusions are:

Intended or expected property damage or injuries

Property damage or bodily injuries that you cause intentionally or might reasonably expect to occur as a result of your actions are not covered.

Racing

Damage or injuries caused by racing are excluded from coverage.

Mobile equipment operation

Liability associated with the use of mobile equipment like a forklift or crane is not covered.

Injuries covered under workers' compensation

Injuries addressed by a workers’ comp policy are not covered by commercial auto insurance.

Hired and non-owned vehicles

Only vehicles listed on the policy are covered. Temporary rental vehicles are covered if your listed vehicle is being repaired, serviced, or suffered a total loss. If you get a replacement vehicle for a vehicle that is listed on the policy, you have 30 days from when you buy it to replace it on our policy. Other vehicles that you may rent or use are not covered by this policy. For example, employee-owned vehicles or borrowed vehicles are not covered, but hired/non-owned coverage can be added to a general liability policy or business owners policy (BOP) to cover those vehicles.

This is a partial list of exclusions. Our insurance experts can provide more details.

How Much is Commercial Auto Insurance?

Multiple factors go into determining the commercial auto insurance cost for your business. However, our direct-to-you model enables us to provide coverage at up to 20% less than other companies. The best way to know expected business car insurance costs is to get a fast, easy, online quote.