Your personal automobile policy does NOT cover vehicles used by your business. If your business uses vehicles or anything that is required to be titled by your state, then you need a commercial auto policy. Commercial auto coverage insures against property damage to vehicles and damage caused to others by those vehicles.
You need commercial auto coverage if you or your employees will use titled vehicles in their work. Many small-business owners believe that if their car is in their personal name then commercial coverage is not necessary and their personal auto policy will cover the auto. This is not true. Most personal auto policies exclude from coverage the use of a vehicle for commercial purposes. If you use any titled vehicles in your business, then purchase this coverage. In my opinion, the risk of a serious auto accident wiping out a small business far exceeds the premiums paid for the coverage and this is not the place to save premiums.
A commercial auto policy does the same thing as your personal auto policy. It provides coverage to repair or replace a vehicle damaged in an accident and it will pay the claims of any third-party injured in the accident. You should consider purchasing “non-owned auto” coverage as well. This will provide coverage to the business when employees use their personal vehicles for the business. It will also provide coverage whenever the business makes use of vehicles it does not own. This includes your car when used for business purposes. Commercial auto insurance is one of the most important aspects of your business insurance program. If your business uses a vehicle, or many vehicles, you should probably get commercial auto insurance. At least it’s worth a discussion with us and we should review a complete picture of your vehicle use.