Commercial Auto Overview


A commercial auto policy provides coverage for automobiles used by a business, whether owned or not. It is made up of several coverage parts.


Liability Coverage


Provides protection against liability for bodily injury and property damage to others caused by the maintenance or use, including loading or unloading, of your company-owned autos. It also provides protection for covered pollution costs and expense


  • Bodily Injury - any physical harm to other persons including sickness, disease or death resulting from these.
  • Property Damage - damage to tangible property including the loss of use of such property.


Uninsured Motorists Coverage


Provides protection, as required by applicable state law, to the insured for damages sustained by the insured that result from an accident cause by an "uninsured" motorist.


Underinsured Motorists Coverage


Provides protection, as required by applicable state law, to the insured for damages sustained by the insured that result from an accident caused by a driver whose automobile liability insurance limits are inadequate.


Physical Damage Coverage


Protects your owned autos against accidental loss or damage by your selected perils:


  • Collision Coverage: losses caused by the collision of your covered auto with another object or the overturn of the covered auto.
  • Comprehensive Coverage: losses caused by any cause of loss other than collision or overturn. Collision with an animal, bird, or falling object is covered under Comprehensive Coverage.
  • Specified Causes of Loss Coverage: losses caused by: fire, lightning or explosion; theft; windstorm; hail or earthquake; flood; mischief and vandalism; the sinking, burning collision or derailment of a conveyance transporting the covered auto.


Popular Options


Medical Payments: provides payment for necessary medical services to an insured as a result of an auto accident regardless of who is legally liable.


No-Fault: provided where the coverage is required by state law, and provides payment for medical, hospital, work loss, and other related expenses, regardless of fault for the accident.


Personal Effects Coverage: in case of theft of auto, provides up to $400 coverage for personal effects owned by an insured in a covered auto.


Auto Loan/Lease Gap Coverage: for private passenger auto types that are loaned or leased for a period of six months or longer and the policy provides Physical Damage Coverage, it covers the gap between the outstanding amount of a loan or lease and the actual cash value of the vehicle.


Coverage Extension - Audio, Visual and Data Electronic Equipment not designed Solely for the production of sound: In a standard policy, this coverage is limited to the electronic equipment designed solely for the reproduction of sound. However, some endorsements can expand that coverage to provide for audio, visual and date electronic equipment that is permanently installed in the covered autos that receives or transmits audio, visual or data signals and that is not solely designed for the reproduction of sound. Examples include: built-in DVD players, GPS systems and permanently fixed computers that are powered by the vehicle.


Hired Auto Physical Damage Coverage: Physical damage coverage can be provided for autos which are hired, rented or borrowed if the policy provides Physical Damage Coverage. The limit of coverage is usually restricted to $50,000 and subject to the highest physical damage deductible on the policy.


Blanket Waiver of Subrogation: eliminates the need to specifically schedule the waiver for a person or organization.


Blanket Additional Insured: Eliminates the need to specifically schedule an additional insured required in a written contract or agreement.


Employee Hired Autos: covers an employee as an insured when they hire or rent an auto in their own name in the course of employment.


Coverage Extensions - Trailers: Increases the load capacity of trailers to 3000 pounds for liability up from the standard 2000 pound limit under most standard policy forms.