Any business that involves cars, trucks, or vans in its operations requires Commercial Auto Insurance. Suppose your company uses a vehicle to run errands, a limo to transport clients, or a van to pick up or deliver equipment. In that case, you must have Commercial Auto coverage in addition to larger construction-type trucks, such as dump and box trucks.

What Does Commercial Auto Insurance Cover?

• Limousines, which often require higher liability limits due to passenger risk.

• Tow trucks; in fact, they benefit from special endorsements that address roadside operations.

• Taxicabs and livery vehicles, since constant passenger transport increases exposure.

• Refrigerated trucks, which may need added protection for perishable cargo.

• Sport utility vehicles, frequently used for both staff and equipment transport.

• Utility vans, offering coverage for tools and service operations.

• Catering trucks, where both the vehicle and on-board equipment must be insured.

• Rented or leased vehicles; moreover, short-term use still carries full liability.

• Pickup trucks, one of the most common vehicles used by contractors and small businesses.

Moreover, you can add endorsements that extend protection to employees, equipment, or even the goods you transport. As a result, your policy adapts to your business’s unique needs. Most importantly, these add-ons shield your company from lawsuits and unexpected costs.

Give us a call or request a FREE Quote and a Colstan and Associates agent will be happy to assist you.

A commercial auto policy provides liability and collision protection for your business vehicles. Moreover, it offers comprehensive coverage against theft, vandalism, and natural disasters. If your vehicles are financed, lenders may also require additional coverage to meet their standards. In addition, you can extend your policy with endorsements that protect employees, equipment, and transported goods. Altogether, these options ensure your company stays safeguarded from costly lawsuits and unexpected losses.

Most commercial auto insurers offer both narrow and broad coverage options. In most cases, they rely on the standard ISO Business Auto Policy, which uses numbers 1–9 to identify covered autos. Because these symbols appear on your policy, they are important for understanding which vehicles qualify for protection. In other words, only the autos specifically designated in your policy are insured.

Here is a list of most of the significant covered auto symbols used:  

Symbol 1 – Applies to any auto.

Symbols 2, 3, and 4 – Owned Autos, Owned Private Passenger Autos, and Owned Auto other than Private Passenger 

Symbol 5 – Refers to owned autos subject to no-fault law.

Symbol 6 – Covers owned autos subject to compulsory uninsured motorist (UM) law.

Symbol 7 – Specifically Described Autos 

Symbol 8 – Hired Autos 

Symbol 9 – Non-owned Autos 

*Note that symbol 1 has the broadest coverage, while symbols 8 and 9 are the narrowest. You will find an explanation of the meaning of each symbol in the section of your policy, which usually appears on page 1 of the Business Auto Coverage Form. 

In contrast to Personal Auto policies, which set separate limits for bodily injury and property damage (split limits), Commercial Auto policies typically use a Combined Single Limit (CSL). As a result, businesses benefit from higher limits for both bodily injury and property damage, and this protection also applies per occurrence. In addition, you can purchase an Umbrella policy to extend those limits. For example, many small businesses carry CSLs that range between $500,000 and $1,000,000.

Remember, New York State liability insurance requirements must always be met. As a business owner, carrying only state minimum limits exposes you to significant risk. That’s why speaking with an agent is critical to determine the right protection for your operation.

In addition, minimum coverage often fails to match the realities of business liability. Moreover, if your business vehicles are financed, your lender may also require comprehensive and collision coverage. Ultimately, choosing stronger limits safeguards both your business and your peace of mind.

Accidents involving a driver with no or limited insurance.

Medical expenses in the event you or your passenger(s) are in an accident.

Providing services such as towing, tire changes, locksmith, etc.

Covering (usually up to a certain amount) theft of personal belongings of you or an employee.