What Is Business Auto Insurance?

Business auto insurance covers liability and damages for vehicles owned by your business or driven as part of your business operations. It is similar to personal auto insurance but is designed to protect your business vehicles and assets instead of your personal ones.

Business vs. Personal Auto Insurance

While business and personal auto insurance share similarities, the key difference lies in their coverage scope. Business auto insurance is specifically for vehicles owned and used by your business. Personal auto insurance typically does not cover business-related vehicle use, making it essential to have both types of policies if you use your vehicle for both personal and business purposes.

How to Know When You Need Business Auto Insurance

If your business owns company cars, delivery trucks, or specialized vehicles, you need business auto insurance. Additionally, if you frequently or occasionally operate your personal vehicle for business purposes, you should consider a business auto policy to cover your business-related vehicle use.

What Does Business Auto Insurance Cover?

Business auto policies cover cars, trucks, trailers, and other vehicles your business owns. Optionally, it can also cover vehicles your business leases or rents, as well as vehicles owned by others that are driven for business purposes. Coverage typically includes:

• Liability Coverage: For bodily injury and property damage resulting from an accident.
• Collision Coverage: For damage resulting from a collision or vehicle overturning.
• Comprehensive Coverage: For damages from non-collision events like fire, theft, or flooding.
• Specified Perils Coverage: Similar to comprehensive coverage but only covers named perils.
• Hired and Non-Owned Auto Insurance: Covers vehicles not owned by your business but used for business purposes.

When to Add a Business Auto Policy

Consider adding a business auto policy if:

• Your business owns, leases, or hires vehicles.
• You drive a personal vehicle for business purposes.
• Your employees drive on the job.

Examples of business owners or contractors who would likely need business auto insurance include gig workers for delivery and ride-hailing apps, real estate agents, contractors, and business owners who drive from one work site to another.

The Bottom Line

Not having business auto insurance when you need it could leave you and your business vulnerable to medical expenses and property damage in the event of a work-related accident. Adding a business auto policy ensures that your business-owned vehicles, personal vehicle, and employees are covered, so that driving on the job doesn’t leave anyone exposed.

Contact O1ne Mortgage for Your Mortgage Service Needs

At O1ne Mortgage, we understand the importance of protecting your business assets and employees. If you have any mortgage service needs, don’t hesitate to call us at 213-732-3074. Our team of experts is here to help you navigate the complexities of business auto insurance and ensure that you have the coverage you need.