One of the most common insurance gaps for small and mid-sized businesses is assuming that a personal auto policy will cover accidents that occur while driving for business purposes. In most cases, it will not.
Why Personal Auto Is Not Enough
Personal auto policies typically exclude coverage for vehicles used primarily for business purposes. If an employee is involved in an accident while making a delivery, visiting a client, or transporting materials — and the vehicle is insured under a personal policy — the claim may be denied.
What Commercial Auto Insurance Covers
Business Auto Liability: Pays for bodily injury and property damage caused by vehicles your business owns, leases, or rents during business operations.
Physical Damage (Collision & Comprehensive): Covers damage to your business vehicles from accidents, theft, vandalism, weather events, and other covered perils.
Uninsured / Underinsured Motorist: Protects your business and drivers if they are hit by a driver with no insurance or insufficient coverage.
Medical Payments / PIP: Covers medical expenses for the driver and passengers of your vehicle after an accident, regardless of fault.
Hired and Non-Owned Auto (HNOA)
If your employees use their personal vehicles for business — or if you occasionally rent vehicles — you need Hired and Non-Owned Auto coverage. This fills the gap between your employee's personal auto policy and your business's liability exposure.
HNOA is often added as an endorsement to a General Liability or Business Auto policy, and it is critical for businesses where employees regularly drive personal vehicles for work purposes.
Fleet Programs
Businesses with five or more vehicles often qualify for fleet programs, which can offer more comprehensive coverage at competitive pricing. Fleet programs can be structured to cover owned, leased, and hired vehicles under a single policy.
Work With Capital & Co
Whether you have one business vehicle or a full commercial fleet, Capital & Co can structure a commercial auto program that protects your operations and keeps your business on the road.
Questions About Your Coverage?
Speak with Capital & Co about a strategy built for your business.
