A vehicle used for business is not fully covered by a personal auto policy, a gap that surprises many small businesses at the worst moment. Commercial auto insurance covers vehicles used in the course of business, and understanding when it is required, and where personal coverage quietly ends, prevents an expensive discovery after an accident.
Commercial auto covers liability for injuries and damage the business's vehicles cause, plus physical damage to the vehicles themselves, much like a personal policy but written for business use and with higher limits available. It applies to owned vehicles, from a single work truck to a fleet, used to conduct the business's operations.
Personal auto policies generally exclude or limit coverage for business use, so an accident that happens while a vehicle is being used for work may not be covered under a personal policy at all. A business relying on personal auto for work vehicles has a gap that can become a large uninsured liability. When a vehicle earns its keep, it usually needs commercial coverage.
A subtler exposure is employees driving their own cars, or rented vehicles, for work. Hired and non-owned auto coverage addresses that, protecting the business when a vehicle it does not own is used on its behalf. Many businesses have this exposure without a single company car, which is exactly why it is easy to miss.
When the vehicle works, the policy has to know.
This is general information, not personalized insurance advice. Coverage terms, definitions, and availability vary by policy and provider.