Commercial Auto Insurance in Florida

Running a business in Florida means keeping things moving—literally. Whether you’re delivering goods, visiting clients, or managing a small fleet, having the right commercial auto insurance is a must.

With Florida’s no-fault insurance laws and unpredictable driving conditions, it’s crucial that companies have adequate coverage to stay compliant and financially secure.

From handling accident and liability claims to ensuring your business stays on track after a setback, we’ll walk you through everything you need to know to protect your vehicles, employees, and bottom line.

Key Takeaways

• Who Needs It? If your Florida business uses vehicles for work—like making deliveries or hauling tools—you need commercial auto insurance. Think of it as a business expense you can't afford to skip.
• What's Required? Florida law says you need at least Personal Injury Protection (PIP) and Property Damage Liability (PDL). It's the bare minimum to keep you legally on the road.
• Why a No-Fault State Matters: Florida's a "no-fault" state. This means your own PIP coverage helps pay your medical bills after an accident, no matter who caused it. It’s like having a first-aid kit for your finances, getting you help right away.

What Businesses Need a Commercial Auto Insurance Policy in Florida?

In Florida, any business that owns or uses vehicles for work-related purposes is required to carry commercial auto insurance. This typically includes businesses like:

• Transportation & Delivery Services: Trucking companies, courier services.
• Contractors & Trade Services: Construction companies, general contractors, electricians, plumbers, roofers, HVAC technicians, and landscapers who use company vehicles to transport tools and materials.
• Retail & Wholesale Businesses: Grocery and food suppliers, furniture and appliance delivery companies, florists with delivery services, and wholesalers transporting goods.
• Service-Based Businesses: Cleaning services, mobile pet grooming, mobile detailing and car wash businesses, pool maintenance companies, carpet cleaning services, junk removal services, and pest control companies.
• Agriculture & Farming: Dairy and livestock farms, crop transportation services, and agricultural supply companies.
• Event & Hospitality Businesses: Catering companies, event planning businesses with rental vehicles, and party supply rental companies.
• Security & Professional Services: Private security firms, real estate agencies with company vehicles, and property management companies.

Differences Between Personal and Commercial Auto Insurance

While a personal auto policy covers everyday driving, it typically excludes business use. This means if you use your vehicle for deliveries, transporting clients, or driving between job sites, your insurer could deny a claim after an accident.

Commercial vehicles are a greater risk to insurers as they are on the road more often and may carry valuable equipment, passengers, or cargo. If an employee causes an accident while working, your business could be held liable for damages. A commercial policy is designed to handle higher liability limits, multiple drivers, and specialized vehicle use, protections that a personal policy doesn't offer.

Defining Commercial Vehicles

Florida has specific stipulations to help businesses determine whether they require commercial auto coverage.

One major factor is the vehicle's weight (GVWR). If your truck, van, or other vehicle weighs 26,001 pounds or more, it’s considered a commercial vehicle under state and federal guidelines. This applies to big rigs, box trucks, and certain heavy-duty work vehicles.

If your vehicle has three or more axles, it qualifies commercial and needs proper coverage even if it doesn’t hit that weight limit.

The way a vehicle is used also matters. If it’s registered to a business, regularly transports goods or passengers for hire, or is equipped with specialized equipment; it likely falls under Florida’s commercial vehicle classification. This includes construction vehicles, and large delivery vans.

Florida Commercial Auto Insurance Requirements

Whether you own a single work truck or several work vehicles, you need coverage that meets Florida’s unique requirements and protects your business from unexpected costs. It’s important to understand the state’s mandatory minimums to ensure you’re adequately covered in the event of an accident and compliant with state regulations.

Florida's Legal Requirements for Commercial Auto Insurance

If you’re using a vehicle for business purposes in Florida, state law requires you to carry commercial auto insurance—no exceptions. Florida follows a no-fault insurance system, meaning every commercial vehicle must have at least $10,000 in Personal Injury Protection (PIP) to take care of medical expenses and lost wages after an accident, regardless of who’s at fault. Additionally, businesses must carry $10,000 in Property Damage Liability (PDL) to cover damage their vehicle causes to someone else’s property.

Types of Florida Commercial Auto Insurance Coverage

Different operations have different risks, which is why there are multiple commercial auto insurance coverage options. Understanding what each type offers is key to keeping your operations running smoothly.

Liability Coverage: Bodily Injury and Property Damage

Bodily injury liability coverage helps cover medical bills, lost wages, and legal fees if your driver causes an accident that injures someone else. Without it, a single lawsuit could be financially devastating for your company.

Equally important is property damage liability, which pays for damage your vehicle causes to another person’s property. Florida requires at least $10,000 in this coverage, but that often isn't enough to cover costly repairs after an accident involving a commercial vehicle.

Collision and Comprehensive Coverage

Collision coverage helps pay to repair or replace your business vehicle if it's damaged in an accident, no matter who is at fault. It's especially vital for businesses that depend on their vehicles daily, because downtime can mean lost income.

While collision protects you from accidents, comprehensive coverage handles damage from other events like theft or severe weather. For businesses in Florida, where storms can cause major damage, comprehensive coverage ensures you aren’t left paying the bill.

Additional Coverage Options

You can customize your policy with extra protection for your specific business needs. Popular options include:

• Medical Payments Coverage (MedPay): Covers medical expenses for the driver and passengers in your business vehicle after an accident, regardless of who is at fault. This is particularly useful for businesses with employees who frequently travel for work.
• Uninsured/Underinsured Motorist Coverage (UM/UIM): Protects your business if one of your vehicles is involved in an accident with a driver who doesn’t have insurance or enough coverage. This helps businesses avoid out-of-pocket repair and medical costs after a collision.
• Hired and Non-Owned Auto Insurance (HNOA): Provides liability coverage for rented, leased, or employee-owned vehicles used for business purposes. This policy is ideal for companies that rely on employee-owned cars for deliveries or sales visits because it protects them from lawsuits or damages caused by those vehicles.
• Roadside Assistance & Towing Coverage: Helps cover towing, battery jumps, flat tire changes, and lockout services if a business vehicle breaks down. It is especially helpful for businesses that rely on deliveries, service calls, or frequent travel.

Cost of Commercial Auto Insurance in Florida

The cost of commercial auto insurance in Florida varies based on multiple factors that assess a business’s risk level, vehicle type, and coverage needs. Insurers evaluate specific criteria when determining rates, and understanding these factors can help businesses manage costs while maintaining the right coverage.

• Type of Business & Industry: Businesses with higher exposure such as trucking, construction, or delivery services typically pay more for coverage.
• Vehicle Type: Larger or specialized vehicles (e.g., box trucks, tow trucks) cost more to insure than standard company cars due to repair and replacement costs.
• Driving Records: Businesses and employees with clean driving records help lower premiums, while accidents, violations, or DUIs can significantly increase rates.
• Coverage Limits & Policy Add-Ons: Higher liability limits, comprehensive and collision coverage, uninsured motorist protection, and other endorsements raise insurance costs.
• Number of Vehicles & Drivers: Managing more company vehicles or listing more employees increases risk, leading to higher premiums.
• Location: Where your business operates can influence rates, among other factors.
• Deductible Amount: Choosing a higher deductible can reduce premium costs, but it also means higher out-of-pocket expenses in the event of a claim.

Other Business Insurance Policies Available to Florida Businesses

Depending on your organization’s industry, size, and unique needs, you’ll want to consider coverage beyond just commercial auto insurance. Here are some other policies commonly used by businesses:

• Business Owner’s Policy (BOP): Combines general liability and commercial property insurance into one convenient package. It’s a great way for small to medium-sized businesses (SMBs) to get broad coverage for their operations and physical assets at a lower cost.
• General Liability Insurance: Protects your company from third-party claims for injuries, property damage, or lawsuits that happen on your premises or because of your operations. Whether someone trips in your office or a client sues for damages, this coverage helps keep your business covered.
• Professional Liability Insurance: Also known as Errors & Omissions (E&O) insurance, it protects businesses that provide professional services from negligence or mistakes in their work. If a client claims your advice or service caused them harm, this coverage helps defend your company.
• Workers’ Compensation Insurance: Covers your employees if they get injured or sick while on the job. It helps pay for medical bills, rehabilitation, and lost wages, and it’s typically required by law for businesses with employees.
• Umbrella Insurance: Provides an extra layer of protection over your other insurance policies. If a claim exceeds your standard coverage limits, umbrella insurance covers the difference.

Get a Florida Commercial Auto Insurance Quote Today!

In Florida, commercial auto insurance is more than just a requirement—it’s a crucial part of protecting your business. Whether you’re running a catering company in Miami or a delivery service in Tallahassee, your vehicles are essential.

Don’t wait until after an accident to secure your commercial auto coverage. No matter the size, specialty, or location of your operation. GEICO has the right policy for you. Get your customized quote today!