Which Industries Need Commercial Auto Insurance?

If your business requires yourself or employees to drive a personal or company vehicle, having the appropriate insurance coverage is vital. Relying on your private policy won’t be enough. You need comprehensive commercial auto insurance to ensure maximum protection in case of an accident or other damage to your vehicles.

Business owners and employees benefit from commercial policies where personal coverage won’t. This is mainly because private auto insurance covers individuals operating their cars for purposes other than business, like going to work, taking a child to school, or going on a road trip to visit family. Commercial auto coverage specifically addresses the coverage needs of business owners and their employees carrying out day-to-day work demands. 

Do you need commercial auto insurance? Keep reading to find out!

What Industries Should Have Commercial Auto Insurance?

The reality is that countless industries benefit from commercial auto insurance. This is because the jobs requiring one to drive as part of their job description are limitless. So, when determining if your business falls under one such industry, just ask yourself  For instance, if you own a landscaping business and you or one of your workers is responsible for an automobile accident while driving any company vehicle, having a commercial auto liability policy for your landscaping business would help pay for damages or injuries to other parties.

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If yes, then one of these policies would be a smart choice to ensure that your company cars or fleet have sufficient protection. Still, aren’t sure? Check out the following list of industries that frequently buy business auto insurance:

Manufacturers and Suppliers

If you produce or supply goods, you likely have a fleet of delivery trucks to transport products across the country. A commercial policy would protect not just your drivers and fleet but the goods they carry.


Every industry has a sales department, and some require their sales reps to travel around different service regions. Often, this is in the agent’s personal vehicle or a company car. When your employee is on the road going from one client meeting to another, this is on company time and requires a higher level of coverage that personal insurance doesn’t provide. 

Commercial Trucking

The trucking industry has regulated commercial trucking insurance requirements by the Federal Motor Carrier Saftey Administration. While coverage demands still fall under the umbrella of commercial auto insurance, the risks drivers face are always changing. This is why there are specific minimum coverage requirements set forth by the government.  

Ride-Share Services

The Uber and Lyft business models have quickly become popular for many startup ride-share drivers. However, it also presents a complex insurance need when passengers rely on them to get safely from point A to point B. As a result, commercial auto insurance is quickly becoming a mandatory requirement by many states.


Much like big-rig operators for a warehouse, delivery drivers also need commercial auto insurance when transporting pizza or groceries to a customer’s home. This is true whether working as an employee for a service or operating an independent contractor. 

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Self-Employed Individuals

Even though you may primarily work from home, you’re traveling for work-related activities when visiting clients outside your office. This requires more than just personal insurance should you get in an accident. 

Skilled Trade Contractors

Commercial auto insurance is a must, whether you own a plumbing or construction business and rely on a work van to hold your tools and travel to job sites. It provides comprehensive protection for you, your employees riding in the vehicle, and the contents you’re transporting. 

Real Estate

Realtors are always on the go, helping homeowners and prospective buyers connect and sell their properties. This requires a large amount of time on the road going to meetings, open houses, closings, and more. Having a policy that covers them during their business travels is crucial to mitigate their liability in a traffic accident. 

While this list doesn’t cover every industry that needs a commercial policy for their autos, it shows the countless situations where this level of coverage is essential. It’s also convenient to get a quote and buy business auto insurance online, so there’s no excuse not to have appropriate coverage.

Elements of a Commercial Vehicle Policy

Much like standard auto insurance, commercial coverage protects those behind the wheel, property in the vehicle, and those injured in an accident caused by the company vehicle. Below are some of the elements that cover your business:

  • Comprehensive coverage to handle repair and replacement for damages not related to an accident, such as theft, weather, and other threats.
  • Collision protection ensures accident-related damages get repaired or the vehicle’s replacement.
  • Medical payments for injured parties to receive necessary treatment after a crash.
  • Liability insurance protects your company if an employee driving your vehicle is responsible for causing an accident. For example, your commercial auto policy will cover their injury claim if the other driver suffers a broken arm. 
  • Uninsured/Underinsured coverage for incidents where your employee and/or vehicle suffer harm after another driver causes an accident but doesn’t have sufficient auto insurance. 
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There are also additional coverages you may be able to purchase to increase the level of coverage for your business and drivers. A great example is rental care reimbursement, so your company doesn’t suffer an interruption of service while waiting on vehicle repairs. 

Summing it All Up

At the end of the day, if your company requires you or employees to drive to conduct business or other related activities, you need a commercial auto insurance policy. Anything can happen, a severe weather event, auto collisions, and even theft. So, mitigate these risks with comprehensive coverage and protect your business from costly accident claims and lost goods and/or equipment. 

Even if you only drive to the bank once a week to deposit client payments, without the right policy in place, you risk losing everything you’ve worked so hard to create. Reach out to a reputable insurance provider to find out what level of coverage will meet your business’s coverage needs and risks. 

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