skip to main content
Travelers Logo
  • About
  • Careers
  • Agents
  • Investors
  • Sustainability
  • Contact Us

Register now
Problems logging in?
  • For Individuals
    • Overview
    • Products
      • Car
      • Home
      • Renters
      • Condo
      • Landlord
      • Boat & Yacht
      • Travel
      • Pet
      • Weddings
      • Umbrella
      • All Products
    • Prepare & Prevent
      • Insurance 101
      • Home Central
      • Travelers Garage
      • Managing Through COVID-19
    • Affinity Group Discount
    • Online Service
    • Pay Your Bill
      • Get a Quote
      • Find an Agent
      • Report a Claim
      • Pay Your Bill
  • For Business
    • Overview
    • Products & Solutions
      • Overview
      • Boiler & Machinery
      • Commercial Auto & Trucking
      • Cyber
      • Environmental Liability
      • Excess Casualty & Umbrella
      • General Liability
      • Global Insurance
      • Inland Marine
      • Management & Professional Liability
      • National Programs
      • Ocean Marine
      • Property
      • Small Business Owner's Policy
      • Surety Bonds
      • Workers Compensation
        • Find an Agent
        • Report a Claim
        • Pay Your Bill
    • Industries
      • Overview
      • Agribusiness
      • Architects, Engineers & Surveyors
      • Auto & Truck Dealers
      • Business & Professional Services
      • Construction
      • Education
      • Energy & Renewable
      • Equipment Dealers
      • Financial Institutions
      • Food Services
      • Health & Related Services
      • Hospitality & Recreation
      • Manufacturing
      • Marine Industries
      • Museums & Fine Art
      • Non-Profit
      • Oil & Gas
      • Public Entities
      • Real Estate
      • Retail
      • Technology
      • Transportation
      • Wholesale & Distribution
        • Find an Agent
        • Report a Claim
        • Pay Your Bill
    • Services
      • Overview
      • Risk Control
      • Claim
      • Premium Audit
      • Online Customer Tools
      • Risk Management Information Services
      • Travelers Client Advantage
        • Find an Agent
        • Report a Claim
        • Pay Your Bill
    • Small Business
      • Overview
      • Automobile Insurance
      • Business Owner's Policy
      • Data Breach
      • Employment Practices Liability
      • Professional Insurance
      • Umbrella Insurance
      • Workers Compensation Inurance
        • Find an Agent
        • Report a Claim
        • Pay Your Bill
    • Large Business
      • Overview
      • Casualty
      • Cyber
      • Management & Professional Liability
      • Property
        • Find an Agent
        • Report a Claim
        • Pay Your Bill
    • Multinational Business
    • Prepare & Prevent
      • By Topic
      • By Industry
      • Navigating Your Business Through COVID-19
        • Find an Agent
        • Report a Claim
        • Pay Your Bill
      • Find an Agent
      • Report a Claim
      • Pay Your Bill
  • Claim Center
    • Claim Center
    • Should I File a Claim?
    • Report a Claim
    • Roadside Assistance
    • Find a Service Provider
    • Check Your Claim Status
    • Manage Your Claim Experience
      • Claim Reporting Next Steps
      • Claim Guide Library
      • Workers Compensation Resources
    • Claim Capabilities
      • Get a Quote
      • Find an Agent
      • Report a Claim
      • Pay Your Bill
  • Prepare & Prevent
    • For Individuals
    • Home Central
      • Buying & Selling
      • Home Maintenance
      • Home Renovation
      • Home Safety
      • Moving
      • Smart Home
    • Travelers Garage
      • Buying & Selling
      • Car Maintenance
      • Distracted Driving
      • Safe Driving
      • Teen Driving
      • Boating
    • Insurance 101
    • Weather
    • For Business
    • Industries
      • Construction
      • Manufacturing
      • Nonprofit
      • Small Business
      • Technology
    • Topics
      • Business Continuity
      • Cyber
      • Driver and Fleet Safety
      • Facilities Management
      • Internet of Things
      • Product and Services Liability
      • Supply Chain Management
      • Workplace Safety
    • Travelers Risk Index
      • Get a Quote
      • Find an Agent
      • Report a Claim
      • Pay Your Bill
  • About Travelers
    • Overview
      • Awards & Recognition
      • Careers
      • Community
      • Diversity & Inclusion
      • Sustainability
      • History
      • Investors
      • Media Resources
      • News
      • Travelers Championship
      • Travelers Institute
      • Get a Quote
      • Find an Agent
      • Report a Claim
      • Pay Your Bill
    • Get a Quote
    • Find an Agent
    • Report a Claim
    • Pay Your Bill
Main Navigation
  • For Individuals
      • Insurance for Individuals
      • Products
        • Car
        • Home
        • Renters
        • Condo
        • Landlord
        • Boat & Yacht
        • Travel
        • Pet
        • Weddings & Events
        • Umbrella
        • More
      • Prepare & Prevent
        • Insurance 101
        • Home Central
        • Travelers Garage
      • Affinity Group Discount
      • Online Service
      • Pay Your Bill
    • Get a home quote now

      It's easy to get a free quote for home insurance from Travelers in just a few minutes.

       

      Get a home quote now
  • For Business
      • Products & Solutions
        • Commercial Auto & Trucking
        • Cyber
        • General Liability
        • Management & Professional Liability
        • Property
        • Small Business Owner's Policy
        • Surety Bonds
        • Workers Compensation
        • More
      • Industries
        • Construction
        • Energy & Renewable
        • Financial Institutions
        • Healthcare
        • Manufacturing
        • Real Estate
        • Technology
        • Transportation
        • More
      • Prepare & Prevent
      • Services
        • Risk Control
        • Claim
        • Premium Audit
        • More
      • Pay Your Bill
      • Small Business
      • Large Business
      • Multinational Business
      • For Business Overview
    • Tips for Managing Risks Related to a Remote Workforce

      Tips for Managing Risks Related to a Remote Workforce

      With the current reality of more employees working from home through the pandemic, is your business ready for all the implications?

      Learn more
  • Claim Center
      • Claim Center
      • Should I File a Claim?
      • Report a Claim
      • Roadside Assistance
      • Find a Service Provider
      • Check Your Claim Status
      • Manage Your Claim Experience
        • Claim Reporting Next Steps
        • Claim Guide Library
        • Workers Compensation Resources
      • Claim Capabilities
    • Send us your receipts, photos, invoices and more with just a push of a button.

      Securely share information with your Claim team.

      Send us your receipts, photos, invoices and more with just a push of a button.

      Upload a File
  • Prepare & Prevent
      • For Individuals
      • Home Central
        • Buying & Selling
        • Home Maintenance
        • Home Renovation
        • Home Safety
        • Moving
        • Smart Home
      • Travelers Garage
        • Buying & Selling
        • Car Maintenance
        • Distracted Driving
        • Safe Driving
        • Teen Driving
        • Boating
      • Insurance 101
      • Weather
      • For Business
      • Industries
        • Construction
        • Energy
        • Manufacturing
        • Nonprofit
        • Small Business
        • Technology
      • Topics
        • Business Continuity
        • Cyber
        • Driver and Fleet Safety
        • Facilities Management
        • Internet of Things
        • Product and Services Liability
        • Supply Chain Management
        • Workplace Safety
      • Travelers Risk Index
    • Managing Through COVID-19

      Managing Through COVID-19

      Resources to help you adapt to the realities of COVID-19.

      Learn more
  • Home
  • Small Business
  • Commercial Auto Insurance 101

Commercial Auto Insurance 101

Small Business Auto Small Business Auto

Commercial auto insurance is a business insurance policy that applies to autos owned by or used in your business that protects your business against liability for damages caused by accidents involving your business autos and provides certain compensation to occupants of your business autos injured in accidents. If your business owns vehicles, a commercial auto insurance policy can provide valuable financial protection to you and your employees while driving a company owned vehicle or a hired or personally-owned auto in your business operations. It's important to know that a personal automobile insurance policy usually does not cover vehicles used in the operation of your business.

What Does Commercial Auto Insurance Cover?

Commercial auto insurance typically provides coverage for: liability damages; collision or comprehensive physical damage loss to your business autos; medical expenses for injury to occupants of your business autos; and damages sustained by occupants of your business autos due to the negligence of an uninsured or underinsured motorist.

The commercial auto policy provides physical damage coverage for vehicles you own, lease, hire or use in your business and liability coverage for bodily injury and property damage caused to others by your use of the insured business vehicles.

It can include two types of physical damage coverage for your insured vehicles:

  • Collision loss: damage from auto accidents.
  • Comprehensive loss: damage from weather, theft and other non-collision causes.

It also includes two types of liability coverage:

  • Bodily injury coverage: for accident-related injuries to others when you're at fault.
  • Property damage coverage: from accident-related damage to someone else's property, such as a car or house, when you're at fault).

Do I Need Commercial Automobile Insurance?

If you own, lease, hire or use vehicles for business, you should minimally carry liability coverage. It's mandatory in most states for owned autos. In addition, businesses that move goods or people across state lines are required by federal law to have it. For larger commercial vehicles, you may need a commercial truck insurance policy.

You need commercial auto insurance for vehicles that:

  • Are used for business.
  • Carry a commercial license plate or tag.
  • Are registered commercial.

You should also carry commercial auto coverage if you or your employees use vehicles for work-related tasks, such as:

  • Driving clients to the airport;
  • Going on sales calls;
  • Taking packages to a shipper;
  • Shopping for office supplies.

Important to know: You may be required to get additional coverage if you use vehicles for certain functions, including:

  • Delivering food, products or publications;
  • Acting as a chauffeur, taxi or limo service;
  • Transporting flammable or hazardous materials;
  • Carrying equipment;
  • Towing vehicles;
  • Trucking and moving freight.

How Does Commercial Auto Insurance Work?

Commercial auto insurance covers vehicles used for business and the people who drive them.

If you or a driver of your business vehicle causes an accident that injures another person or damages their property, they can file a claim on your policy and bring a lawsuit against you or the driver. Your liability insurance will cover costs to pay damages on the claim up to the policy limit. You or your business will be responsible for any amount of damages above the limit. Your liability insurance will also cover the costs to defend you or the driver of your business vehicle in an accident-related lawsuit, separate from the policy limit.

What are the Coverages Included in a Commercial Auto Insurance Policy?

Many types of coverage are available. Some of the most common coverages include:

  • Collision coverage pays for accident-related damage to your insured business vehicle.
  • Comprehensive coverage pays for damage to your insured business vehicle from non-collision causes such as theft, weather, vandalism or fire.
  • Rental reimbursement pays for a rental vehicle, up to certain limits, after an accident causes damage to your insured business vehicle.
  • Liability coverage pays injury damages to others and damage to other people's property if you are at fault, including your legal expenses if you're sued.
  • Uninsured or Underinsured Motorist coverage pays for injury damages to or property damage suffered by occupants of your insured business vehicle if the accident is caused by an inadequately insured driver.
  • Personal Injury Protection pays medical expenses and income loss for accident-related injury suffered by occupants of your insured business vehicles, regardless of fault.
  • Medical Payments coverage pays medical or funeral expenses for accident-related injury suffered by occupants of your insured business vehicles, regardless of fault.

These coverages are available for autos you own and may be available for autos you hire or lease or for non-owned autos (autos used in your business that you don't own, hire or lease). Some of these coverages vary by state. If your autos are garaged out of state, check with your agent to ensure you have adequate coverage for the states where your insured autos will be used.

Is Personal Use Covered by a Commercial Policy?

Personal use of a business vehicle is generally covered by a commercial policy. However, certain coverage for family members is often not provided. Check with your agent to determine whether you need additional coverage for family use.

How Do I Purchase Commercial Auto Insurance?

You can purchase commercial auto insurance through an independent insurance agent. They'll take time to understand your business operations and vehicle use so they can find optimal coverage at a fair price. Your agent will also guide you through the claims process when an incident occurs.

Using one agent for all your business insurance may help ensure your business has maximum protection and you aren't paying for unnecessary duplicate coverage.

How Much Does a Policy Cost?

It depends. The price is based on factors including:

  • Business size;
  • Number and types of vehicles insured;
  • Number of employees driving vehicles insured;
  • Costs of vehicles hired;
  • Business and driving risks;
  • Amount of coverage.

An agent can help you find affordable coverage.

Are Premiums Tax-deductible?

Sometimes they can be deducted when a vehicle is used for business. Check with your tax expert to find out for sure.

You've worked hard to build your business. Learn more about how Travelers insurance coverages are built to help protect it.

Learn More About Commercial Auto Insurance

More Insights & Expertise

small business owner looking up insurance terms

Small Business Insurance Glossary

Having trouble understanding your small business insurance policy? Here is a list of terms to help.

Property 101

Commercial Property Insurance 101

There are many factors to consider when operating your own business, including the importance of having property insurance. Here's what you need to know.

Umbrella 101

Umbrella Insurance 101

Why are Umbrella insurance policies so important for small businesses? Here's what you should know.

Find Solutions

Discover products by industry:

Tailor your Solution


Find an Agent

Need an Agent?

Get the personal service and attention that an agent provides.

Find a local agent in your area:


Small Business Commercial Auto

Small Business Commercial Auto Insurance for Today's Unique Risks


Related Links

  • Small Retail Business - Insurance Coverage Scenarios
  • Tips for Selecting Safe Drivers
  • 8 Elements of a Fleet Safety Program

Resources

  • MyTravelers® for Business
  • Small Business Glossary of Terms
  • Small Business FAQ
  • Navigating your business through COVID-19

For Agents

  • Agent Website
  • Become an Agent

Find an Agent

Need an Agent?

Get the personal service and attention that an agent provides.

Find a local agent in your area:

Travelers logo

Travelers and The Travelers Umbrella are registered trademarks of The Travelers Indemnity Company in the U.S. and other countries.
© 2021 The Travelers Indemnity Company. All rights reserved.

  • Travelers on Facebook
  • Travelers on YouTube
  • Travelers on Twitter
  • Travelers on LinkedIn
  • Travelers on Instagram

Products & Services

  • For Individuals
  • For Businesses
  • Claim Services
  • Prepare & Prevent

Our Company

  • About Travelers
  • Careers
  • Investors
  • Sustainability

Connect

  • Customer Support
  • MyTravelers®
  • For Agents
  • Find an Agent

Legal & Compliance

  • Terms of Service
  • Privacy & Security
  • Accessibility
  • Producer Compensation Disclosure

The Travelers Indemnity Company and its property casualty affiliates. One Tower Square, Hartford, CT 06183
This material does not amend, or otherwise affect, the provisions or coverages of any insurance policy or bond issued by Travelers. It is not a representation that coverage does or does not exist for any particular claim or loss under any such policy or bond. Coverage depends on the facts and circumstances involved in the claim or loss, all applicable policy or bond provisions, and any applicable law. Availability of coverage referenced in this document can depend on underwriting qualifications and state regulations.
All rights reserved. Travelers and the Travelers Umbrella logo are registered trademarks of The Travelers Indemnity Company in the U.S. and other countries.