Commercial auto
You need a commercial auto policy if:
- Your business owns, leases or rents any vehicles
- Employees drive company-owned, leased or rented vehicles
- Employees drive their own vehicles while working for your company
- You or your employees use company cars for both business and personal driving
Coverage includes bodily injury and property damage liability, uninsured and underinsured motorist, collision and comprehensive, medical payments, towing and rental. If the vehicle is owned by the business, make sure the business is listed as the principal insured rather than you personally — this avoids confusion if a claim is filed.
Is minimum coverage enough?
Minimum commercial auto liability requirements vary by state and are often the same as personal auto minimums. Many businesses choose far more. If someone sues your company for more than your policy covers, it could put you out of business. We generally recommend at least $100,000 of commercial auto liability per vehicle — and to be safe, $500,000 to $1 million per occurrence.
A good agent will ask how you use vehicles, who drives them and whether employees use their own cars for work. Commercial and personal auto policies look similar but differ in many technical ways, so ask us to explain the options.
General liability
The chances of a business being sued have grown significantly. General liability (GL) protects you from claims of bodily injury, property damage, personal injury and more that arise from your operations. Contractors who don’t own commercial buildings may only need general liability rather than a full business owners policy.
- Bodily injury — cost of care, hospitalization, loss of services and restitution for a resulting death
- Property damage — physical damage to other people’s property or loss of its use
- Products–completed operations — protection if a product you made or work you completed causes injury
- Contractual liability — liability you take on under certain contracts
Business owners policy (BOP) & commercial packages
A BOP combines liability protection with coverage for your building and business property in one package, designed for businesses with similar kinds of risk. Larger companies may choose a commercial package policy or custom coverage.
- Property insurance for buildings and contents your company owns
- Business interruption insurance for lost income after a fire or other covered event — including extra expenses of operating from a temporary location
- Liability coverage for losses your business causes others, such as defective products, faulty installations or errors in services
A BOP does not cover professional liability, auto, workers’ compensation or health and disability insurance — those need separate policies.
This guide is general information, not a policy. Coverage, limits and exclusions vary by carrier and state — your policy documents are what apply. Ask us about your specific situation.