Business Auto Insurance
Business automobile insurance, also referred to as commercial auto insurance protects a company when vehicles it owns, leases, or uses for business purposes are involved in an accident, cause property damage, or bodily injury liability. It is necessary because personal auto insurance does not cover business use. Moreover, businesses face higher, more complex risks than individual drivers.
What Is Business Automobile Insurance?
Business automobile insurance provides coverage for:
- Liability if a company vehicle causes bodily injury or property damage
- Physical damage to the company owned or leased vehicle, covered under collision & comprehensive
- Medical payments for the insured’s occupants
- Uninsured/underinsured motorists responds when the third- party either has no insurance or very limited limits of liability insurance
- Hired & non-owned auto liability may apply when employees use their own personal vehicle for business, or when renting vehicles for business use
Why It’s Necessary
- Personal Auto Policies Exclude Business Use
If an employee uses their personal vehicle for business errands, deliveries, client visits, or transporting equipment, a personal auto policy may deny the claim. Business auto insurance fills that gap.
- Businesses Face Higher Liability Exposure
Commercial vehicles:
- Travel more miles – are generally on the road longer than a personal automobile • Carry equipment or goods
- May Transport employees or clients
- Operate in congested or high-risk areas
- Employees may rent a vehicle while on business at another state
A single accident can result in six or seven-figure liability claims. Business auto insurance protects the company’s assets from a potential catastrophic loss.
- Required by Contracts and Vendors
Many business clients require proof of:
- Commercial auto liability
- Hired & non-owned auto liability
- Certificate of insurance (COI)
Without it, a business may lose contracts or fail to meet vendor requirements.
4. Protects Against Employee-Related Auto Risks
Employees using:
- Personal vehicles
- Rental cars
- Company vehicles
All create liability for the employer. Business auto insurance covers the company even when the employee is at fault.
- Covers Vehicle Damage and Downtime
Collision and comprehensive coverage protect the business from: • Accidents
- Theft
- Vandalism
- Weather damage
- Animal strikes
This keeps operations running and prevents costly interruptions.
- Shields the Business From Lawsuits
If a company vehicle causes an accident, the business—not the driver—can be sued. Business auto insurance provides:
- Legal defense
- Settlements
- Judgments
Without it, a single lawsuit can cripple or bankrupt a business.
Contact SciTech Insurance today for a no-obligation review with a business insurance agent who can help you with this coverage need.
