Commercial auto insurance is an insurance policy that covers vehicles used for business purposes. It covers damage or loss caused by accidents, theft, or other incidents involving vehicles owned or leased by a business. This article will discuss the importance of commercial auto insurance for businesses and what it covers.

Why is Commercial Auto Insurance Important for Businesses?

Businesses operating vehicles, whether a single company car or an entire fleet, need commercial auto insurance to protect their assets and employees. Vehicles used for business reasons are often not covered by personal auto insurance policies, but commercial auto insurance does. Without commercial auto insurance, a business owner would be liable for any damages or injuries in an accident involving a business-owned vehicle.

What Does Commercial Auto Insurance Cover?

A variety of occurrences involving business-owned automobiles are covered under commercial auto insurance coverage. Typical forms of protection include:

  • Liability Coverage: The most fundamental kind of commercial auto insurance is coverage for general liability insurance, mandated by law in most jurisdictions. It covers losses or injuries for which a company is legally liable in the event of an accident. 
  • Collision Coverage: A business-owned vehicle’s damage from a collision with another car or an object like a tree or building is covered by collision coverage.
  • Comprehensive Coverage: Comprehensive insurance protects against non-collision occurrences, including theft, vandalism, and damage from natural disasters like floods or hail.
  • Uninsured/Underinsured Motorist Coverage: Uninsured/underinsured motorist protection pays for losses or injuries brought on by those underinsured or uninsured enough to pay for the losses.
  • Medical Payments Coverage: Medical payments coverage covers medical expenses incurred by the driver and any passengers in the event of an accident.
  • Non-Owned Auto Coverage: Vehicles not owned by the company but used for business purposes, including employee-owned vehicles used for business trips, are covered under non-owned auto coverage.
  • Hired Auto Coverage: Rented or leased vehicles for business use are covered by hired auto coverage.

Who Needs Commercial Auto Insurance?

Any business that owns or leases vehicles for business purposes should consider purchasing commercial auto insurance. This includes businesses that operate a single company car or an entire fleet of vehicles. Some common types of businesses that need commercial auto PBIB insurance include:

Construction Companies

Construction companies often operate large trucks and other heavy equipment that require commercial auto insurance to protect against damage or loss.

Delivery Services

Commercial auto insurance is important for delivery services, such as food or courier services, to guard against accidents and theft.

Landscaping Companies

Landscaping companies often operate vehicles carrying landscaping equipment, such as lawnmowers and hedge trimmers, which must be covered by commercial auto insurance.

Healthcare Providers

Commercial auto insurance is necessary to protect the cars used to carry patients for healthcare providers, including home health agencies and medical transport businesses.

Real Estate Agents

Real estate agents often use their vehicles for business purposes, such as transporting clients to property showings requiring commercial auto insurance to protect against accidents.


Commercial auto insurance is critical for businesses that own or lease vehicles for business purposes. It covers various incidents involving business-owned vehicles, including liability, collision, and comprehensive coverage. 

Any business that operates vehicles for business purposes should consider consulting with commercial insurance brokers to protect its assets and employees. By doing so, business owners can have peace of mind knowing that they are covered in the event of an accident or other incident involving a business-owned vehicle.

Pascal Burke Insurance Brokerage Inc. is the best place for Contractors to get insured! Our expertise is in a range of insurance that covers both general instances and specialized contractors. Contact us to speak with commercial insurance brokers in Kansas City!