Everything You Need to Know About Commercial Car Insurance

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As an entrepreneur, you know a lot about responsibilities. That’s why you’ve been considering car insurance. Whether you’re new to opening a business or you’ve had one for years, it’s the safe and smart way to go.

Skimping on car insurance is the last thing you want to do when operating a business. In fact, the president of the Insurance Information Institute warns that “business vehicles are often targets” for criminals and insurance fraudsters. For instance, a scammer might see a vehicle that has a company logo on it and (accidentally) collide with it. This person may try to milk the company for all it’s worth through a lawsuit. If your business doesn’t have commercial car insurance – you may be S.O.L. when it comes to paying the bill or fighting the case.

But that’s why you’re here. You want to be insured. Well, there’s a multitude of options and terms to choose from, including covering liabilities, insuring an entire fleet of cars, and the like. With the right knowledge, you’ll be able to find the right insurance for your business. Here’s everything you need to know about commercial car insurance.

The 4-1-1 on Commercial Car Insurance

First off, commercial car insurance covers a variety of situations. As a business owner, you’ll need the same coverages for the car you use in your business as you do for personal travel. You might actually need more coverage. If you’re an entrepreneur using the same car for business and your personal life, that’s a different story.

In this case, any vehicles owned by the business will need the business name to appear as the “principal insured” rather than your name. This helps if there’s an accident and you need to file a claim, or someone needs to file a claim against you. Otherwise, if there’s a business-related accident, your name might end up on the claim rather than the company’s. You don’t want that.

Options and terms vary from one insurance company to another. The top reasons to have vehicle insurance for your business are already mentioned. So, here is what typical coverage includes:

Property damage liability.

Liability for bodily injury to others.

Optional bodily injury coverage for injuries that occur outside of the state in which you reside.

Personal injury to you, your employed drivers or passengers, including medical expenses and lost wages.

Collision coverage for costs associated with an accident.

Comprehensive coverage for damage other than collision.

Medical payments coverage for the cost of hospitalization, treatment and funeral expenses.

Uninsured and underinsured motorist coverage.

Non-owned auto coverage for when you or your employees drive a rented or borrowed vehicle.

Loading and unloading liability.

Replacement vehicle when your commercial vehicle is being repaired and you use a loaner from the repair shop.

Towing and labor costs.

There are many other options, depending on your chosen carrier. It’s up to you to decide what your business will need. Here’s what you have to do prior to obtaining your insurance.

Make sure your policy covers any potential driver or passenger

Keep in mind your policy should cover any potential driver or passenger that will be in the vehicle. Also, remember that business coverage may cost more than a policy on a personal vehicle.

Check IDs

In addition to policies, make sure to check the driving record of everyone who may get behind the wheel. For a small fee, some state DMVs will provide a copy of an employee’s record. This will be super useful in providing safety for all.


Know what you’ll be transporting. There are regulations governing what you may be transporting. Specific policies must be written to cover all liability associated with your cargo.

Travel Route

It’s also useful to consider travel routes your vehicle will be taking. For instance, if your vehicle regularly passes through crime-ridden areas, you probably want to up your coverage for theft.

Alright, entrepreneur. Now it’s all up to you to figure out your needs. With this info, you’ll be sure to find the right policy for you. Soon, your business will be riding all over town—better yet, the country!

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