Business Auto Insurance

Do I need commercial auto insurance?

If you own a business that relies on motor vehicles in order to operate the business, your vehicles should be titled in the business name and covered on a business auto policy. Every vehicle on the road must be covered for the minimum state-required coverage. Liability is compulsory for the majority of states. Federal law requires businesses that move goods or individuals across state lines have certain limits of liability insurance in place to operate.

You may need commercial auto insurance for vehicles:

⇒ Used for business.

⇒ Carry a commercial license plate or tag.

⇒ Over 10,000 pounds gross vehicle weight (GVW)

⇒ Box Trucks

⇒ Carrying passengers for a fee

⇒ Tow trucks

If your business and its personnel frequently use vehicles for business-related tasks, you should consider getting commercial auto coverage. These tasks could be:

⇒ Delivering goods

⇒ Going on sales calls

⇒ Taking packages to a shipper

⇒ Transporting equipment to job sites

Perform services like tree trimming using vehicle-mounted equipment

You may need specialized coverage if you utilize a vehicle for certain activities, such as:

⇒ Acting as a chauffeur, taxi or limo service

⇒ Transporting flammable or hazardous materials

⇒ Carrying equipment

⇒ Towing vehicles

⇒ Trucking and moving freight

⇒ Moving household or office goods