When it comes to protecting your business, commercial auto insurance is essential. Depending on the type of business you own and the vehicles you use, commercial auto insurance may provide coverage for the personal use of the vehicles. In this article, we’ll discuss commercial vehicle insurance vs. hired and non-owned auto liability, who needs commercial auto insurance, and whether or not commercial auto insurance covers the personal use of vehicles.
Commercial Vehicle Insurance vs. Hired and Non-Owned Auto Liability
Commercial vehicle insurance and hired and non-owned auto liability insurance are two types of insurance policies that protect businesses from financial losses that may occur due to accidents involving vehicles.
Commercial vehicle insurance provides coverage for vehicles that are owned or leased by a business and used for business purposes. This can include a wide range of vehicles, such as trucks, vans, buses, and trailers. Commercial vehicle insurance can cover a variety of risks, including liability for bodily injury and property damage, collision, and comprehensive coverage.
On the other hand, hired and non-owned auto liability insurance provides coverage for vehicles that are not owned by the business but are used for business purposes, such as rental cars or employee-owned vehicles used for business errands. This type of insurance can provide coverage for bodily injury and property damage liability in the event of an accident.
It’s important for businesses to carefully consider their insurance needs and assess the risks associated with their vehicle use to determine which type of insurance policy is best for them.
Who Needs Commercial Auto Insurance?
Any business that owns or leases vehicles and uses them for business purposes needs commercial auto insurance. This can include companies that operate fleets of vehicles, such as delivery trucks or buses, as well as small businesses that use a single vehicle for business purposes, such as a plumber or electrician who uses a van to transport tools and equipment.
Commercial auto insurance provides important protection for businesses, covering the costs associated with accidents involving company vehicles, such as property damage, bodily injury, and legal expenses. Without proper insurance coverage, a business may be responsible for paying these costs out of pocket, which can be financially devastating.
In addition to businesses that own or lease vehicles, businesses that hire employees who use their personal vehicles for business purposes may also need non-owned auto liability insurance to protect themselves from potential liability claims.
Does Commercial Auto Insurance Cover the Personal Use of Vehicles?
Commercial auto insurance generally does not cover the personal use of vehicles. If a business-owned vehicle is used for personal use, such as an employee using a company car to run personal errands, the business may be responsible for any accidents or damages that occur during that time.
It’s important for businesses to have clear policies in place regarding the use of company vehicles for personal use and to ensure that employees understand these policies. If personal use of company vehicles is allowed, businesses may need to consider additional insurance coverage to protect themselves from potential liability claims.
Commercial auto insurance is an important type of business insurance that can provide coverage for vehicles used in a business. It can cover any damages caused by the driver, as well as uninsured motorist coverage. However, it typically doesn’t provide coverage for the personal use of vehicles.
Cover Your Commercial and Personal Vehicles with Duane Weber Insurance
If you’re unsure whether your commercial auto insurance policy covers personal use of vehicles, it’s important to talk to your insurance provider to make sure you have the right coverage for your business. At Duane Weber Insurance, we can help you find the right business insurance policy for your needs. Contact us today to get started.