Commercial Auto Insurance for Your Business

Hoffman Hanono
December 15, 2021

If you’re a business owner, chances are you need some form of transportation to keep products and services moving. Your business vehicle or fleet needs to be covered by a commercial auto insurance policy.

What is commercial auto insurance?

This type of policy is common among businesses that have large fleets—this includes trucks, vans, or other service utility vehicles. However, automobiles used for business may also require coverage.

Some small business owners may be more inclined to rely on their personal auto insurance to cover their vehicle, even when they’re using it to conduct business. But you may need a more robust commercial auto insurance if you do the following:

  • You move products or transport people in your vehicle
  • Your employees use the vehicle under your company name
  • Your type of business is risky enough to warrant a higher liability coverage

What does a Commercial Vehicle Policy Cover?

Depending on your state, there are minimum coverages required in the event of a potential accident or damage — not only to your vehicle but also to your drivers, passengers, or another driver and their passengers. If your own vehicle is used mainly for business, it’s likely that your personal auto insurance may not provide coverage. This is also the case if a company owns your vehicle.

A more customized policy may be required if your automobile is used for both business and personal usage. In California, a Business Auto Policy (BAP) can cover “business, personal, non-owned, or hired autos based on the coverage purchased and applied to each scheduled auto.” A BAP differs from a personal auto insurance policy in that it separates limits for bodily injury and property damage.

California follows a 15/30/5 split limit. Here’s what the coverage looks like according to the California Department of Insurance:

Minimum Bodily Injury Liability Limits

  • $15,000 for the death or injury of any one person. If one person is injured in the accident, your coverage pays up to $15,000.
  • A total of $30,000 for the death or injury of more than one person in any one accident. If 2 or more people are injured, the coverage pays up to $30,000. The coverage will not pay more. The injured people share the money.
  • This coverage applies to injuries that you cause to someone else.

Minimum Property Damage Liability Limits

  • $5,000 for damage to the property of other people.
  • This pays for damage you cause to someone else's car, or to objects and structures that your car hits.

Helping You Find the Right Coverage for Your Commercial Vehicle

A comprehensive commercial auto insurance policy is an investment for your business. With all the other potential liabilities you have to account for, it’s crucial to insure your vehicles to keep your business moving. Be prepared for potential collisions and injuries on the road with the right coverage.

Whatever the size of your fleet, Hoffman Hanono can help find the right commercial auto insurance for your San Diego business. Lean on our decades of experience and trusted partnerships to help keep your employees and vehicles safe. Get a quote today!