The pickup with ladders on the rack, the van with your logo on the side, the employee running to the bank in their own car. A personal auto policy was not built for any of them.
Coverage is subject to eligibility and carrier underwriting.
Personal auto policies are written for personal use. Depending on the carrier and the policy form, they may exclude or restrict coverage for vehicles titled to a business, vehicles used mainly for business, vehicles carrying tools and equipment for a trade, heavier trucks, vehicles used to transport goods or people for a fee, and vehicles driven by employees.
The trouble is that this usually surfaces after an accident, when the carrier learns how the vehicle was really being used. A denied claim on a serious accident can put the business’s assets — and sometimes the owner’s — on the line.
If the vehicle is titled to the business, carries your company name, hauls tools or a trailer to job sites, or is driven by employees, it very likely belongs on a commercial auto policy. Tell us how it is used and we will tell you which policy fits.
Injuries and property damage your vehicles cause, at limits suited to a business — usually much higher than personal policies.
Collision and comprehensive for the vehicles themselves, including theft, vandalism, weather, and deer.
Medical coverage for drivers and passengers, structured according to New Jersey or Pennsylvania auto law.
Covers injuries to your drivers when the at-fault driver has little or no insurance.
Liability, and optionally damage, for vehicles the business rents or leases short-term.
Protects the business when employees use their own cars on company errands.
Even a business that owns no vehicles can be sued over one.
| Situation | Why it matters |
|---|---|
| An employee drives their own car to a client meeting and causes an accident | The injured party may sue the business as well as the employee. The employee’s personal policy may not protect the business |
| You rent a truck to move equipment | Rental counter coverage can be expensive, limited, or inadequate |
| A staff member runs to the supply store in their own car | Non-owned auto coverage responds to the business’s liability |
| You have no company vehicles at all | Hired and non-owned coverage can often be added to a business owner’s or general liability program |
Contractor vehicles raise their own questions. Trailers need to be disclosed, and coverage for the equipment and tools carried on them usually comes from inland marine coverage, not the auto policy. Plows and other attachments should be scheduled. Vehicles above certain weights, or operating across state lines or for hire, may be subject to federal or state motor carrier rules that require specific filings.
Your general liability policy typically excludes injuries and damage arising from the use of autos. That exclusion is why the commercial auto policy has to be right.
Sometimes. Some carriers allow limited business use on a personal policy, particularly for a sole proprietor with a light truck. Others do not. The answer depends on the carrier, the vehicle, its title, and how it is actually used, so the question should be asked out loud, not assumed.
Most carriers require you to list regular drivers and will review their driving records. An unlisted driver with a poor record can create a coverage dispute or a premium adjustment at audit.
Many contracts and certificates of insurance require at least $1,000,000 of auto liability. Businesses with significant assets often add an umbrella or excess policy on top.
Generally, no. Tools and equipment are typically excluded from auto physical damage coverage and are insured under an inland marine or contractor’s equipment policy.
Tell us about your vehicles, drivers, and work. We will compare commercial auto options and check the hired and non-owned exposure most businesses overlook.
Cadabra Asset Protection LLC is a licensed independent insurance agency serving New Jersey and Pennsylvania. Michael Lindner Jr., licensed insurance producer.
Coverage descriptions on this page are general summaries provided for informational purposes only. Coverage, limits, endorsements, and exclusions vary by carrier and by state, and actual coverage is governed solely by the terms of the issued policy. This page is not an offer of insurance and is not a guarantee that coverage will be issued. All coverage is subject to eligibility and carrier underwriting approval.
Nothing on this page is legal advice, and no attorney-client relationship is created by its use or by contacting this agency for insurance services.
