Start with ownership and use
Commercial auto decisions depend on who owns the vehicle, who drives it, and what it does for the business. A company pickup, delivery van, leased truck, and employee’s personal car used to pick up supplies present different questions. Disclose actual uses—including carrying tools or materials, deliveries, customer transport, and travel between job sites.
What the policy may address
Liability coverage may respond to certain covered injury or property-damage claims arising from vehicle use. Collision and comprehensive coverage can address physical damage to insured vehicles from specified causes when selected. Options, limits, deductibles, vehicle schedules, and driver restrictions vary. Confirm that the policy lists the right vehicles and operations.
Example: employee uses a personal car
An employee runs a business errand and causes an accident in their own car. Their personal policy may be involved, while the business may also be named in a claim. Hired and non-owned auto liability may address certain liability exposures of the employer, subject to terms. It generally does not insure physical damage to the employee’s car. This distinction is often missed when someone says the business has “auto coverage.”
Uses that need a closer look
Delivery, rideshare, transporting customers, hauling equipment, trailers, and crossing state lines can change underwriting and coverage. Ask how permissive drivers, personal use of company vehicles, borrowed or rented autos, and cargo are treated. A personal policy may limit regular business use, so do not rely on an assumption that it applies.
Questions to ask
Which drivers and vehicles are covered? What liability limits apply? Does hired and non-owned coverage apply, and what does it exclude? Is physical damage included for every vehicle and trailer? Are tools in the vehicle insured under this policy or elsewhere? The NAIC auto guide explains general auto coverages; compare the actual commercial forms and your written vehicle-use practices.