What is commercial auto insurance for businesses?
Commercial vehicle insurance is needed to cover the cars, trucks, and vans used in conducting your business. Large fleets, as well as small businesses, should be properly covered by a commercial auto insurance policy.
What is commercial auto insurance?
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.
Why do you need commercial vehicle insurance?
That's a good question. Certain business usage and vehicle types may be excluded from personal policies. Why? Since personal auto policies were not meant for businesses, they are written and rated differently. More important to you—a business owner or manager—businesses often need the particular coverages found in a commercial auto insurance policy.
Determining whether your situation requires commercial auto coverage can still be confusing. Here's a little more information and examples of when you need commercial insurance.
Commercial vehicle insurance, like your personal auto policy, provides similar coverages such as liability, collision, comprehensive, medical payments (or personal injury protection) and uninsured motorist coverage. However, there are also differences between a commercial auto insurance policy and your personal auto policy that may include eligibility, definitions, coverages, exclusions, and limits.
What are the coverages in a commercial vehicle policy?
- Bodily injury liability coverage – pays for bodily injury or death resulting from an accident for which you are at fault and in most cases provides you with a legal defense.
- Property damage liability coverage – provides you with protection if your vehicle accidently damages another person's property and in most cases provides you with a legal defense.
- Combined single limit (CSL) – Liability policies typically offer separate limits that apply to bodily injury claims for property damage. A combined single limits policy has the same dollar amount of coverage per covered occurrence whether bodily injury or property damage, one person or several.
- Medical payments, no-fault or personal injury coverage – usually pays for the medical expenses of the driver and passengers in your vehicle incurred as a result of a covered accident regardless of fault.
- Uninsured motorist coverage – pays for your injuries and, in some circumstances, certain property damage caused by an uninsured or a hit-and-run driver. In some cases, underinsured motorist coverage is also included. This is for cases in which the at-fault driver has insufficient insurance.
- Comprehensive physical damage coverage – pays for damage to your vehicle from theft, vandalism, flood, fire, and other covered perils.
- Collision coverage – pays for damage to your vehicle when it hits or is hit by another object.
Why should I buy my commercial auto insurance from GEICO?
When you think of GEICO, you think of competitive rates and great service—two very good reasons to have your commercial auto policy with GEICO. You also want a company that has the resources to pay your claims. GEICO, a wholly-owned subsidiary of Berkshire Hathaway, Inc., has combined assets of over $32 billion*. Learn more about GEICO's financial strength and the honors and ratings that set GEICO apart from other companies. Some of our policies are issued through National Indemnity Company (NICO) which is also a member of the Berkshire Hathaway group of insurance companies. Best of all, when you call, you'll get the same great service from GEICO. Learn more about why getting your commercial auto insurance policy with GEICO is a good move for your business.
Unattached tools and materials transported in your vehicle are not covered by commercial auto insurance.
Your commercial auto policy can cover employees, family members, and others as drivers.
If someone drives the vehicle on more than an emergency basis, you should add them as a driver to your policy.
GEICO Commercial Auto Insurance can offer higher liability limits than personal auto insurance. If a specific contract requires higher limits than you already have, call us at (866) 509-9444.
We can also provide proof of your liability limits for your job bids and contracts as needed.
That depends on the size of the trailer.
- Less than 2,000 pounds gross vehicle weight: It's automatically covered for liability. You'll need to add it to your policy for full coverage in case of theft or damage.
- More than 2,000 pounds (usually more than one axle): The trailer won't be covered unless you add it to your policy.
GEICO can help you with the following types of insurance for businesses and freelancers:
- General liability: Covers your business property damage or bodily injury to others.
- Professional liability: Covers the services you provide in case you make an error and/or are sued.
- Business Owner's Policy: Covers merchandise and equipment, plus bodily injury to others or property damage on your premises. Also covers damage to the premises and business interruption expenses.
- Workers' compensation: Covers your employees if they're injured while working.
Coverage is underwritten by Government Employees Insurance Company. In some cases coverage is provided through the GEICO Insurance Agency, Inc., either under an arrangement with National Indemnity Company (NICO), a Berkshire Hathaway affiliate, or with non-affiliated insurers. Some discounts, coverages, payment plans and features are not available in all states. Government Employees Insurance Co. is a subsidiary of Berkshire Hathaway Inc. GEICO: Washington, DC 20076
The above is meant as general information and as general policy descriptions to help you understand the different types of coverages. These descriptions do not refer to any specific contract of insurance and they do not modify any definitions, exclusions or any other provision expressly stated in any contracts of insurance. We encourage you to speak to your insurance representative and to read your policy contract to fully understand your coverages.
*Assets are combined and vary by company. Refer to our financial information page for more details.