Commercial vehicle insurance is a policy of physical damage and liability coverages for amounts, situations, and usage not covered by a personal auto policy. Knowing the difference between a personal auto insurance policy and a commercial auto policy (and when you need which) is important business—for your business.
This type of business insurance covers a variety of vehicles—from automobiles used for business, including company cars, to a wide variety of commercial trucks. Box trucks, food trucks, work vans and service utility trucks are just a few examples of larger commercial vehicles which also require coverage, including coverage for employees operating the vehicle and possibly the equipment inside. You may have heard of this coverage referred to as commercial auto insurance, commercial car insurance, truck insurance, or fleet insurance.
If an employee uses a personal vehicle for business, they usually need commercial auto insurance coverage. A good example is an employee who works as a consultant or traveling inspector. However, employees may not universally need commercial auto coverage for their personal vehicles. For example, an employee who runs a single errand or makes a single delivery usually does not need this type of coverage.
Self-employed businesspeople often have to consider the benefits of commercial auto insurance. They might not use their vehicles enough to warrant a commercial auto policy. For example, a self-employed person who occasionally drives to business meetings may not need this coverage.
However, commercial auto insurance might be essential for other self-employed workers. For example, an independent realtor who drives long distances for work may need this policy. And an independent shipper likely needs this coverage as well.