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Commercial Auto Insurance

Commercial auto insurance is for business owners who use vehicles in the operation of their business. For instance, a flower delivery company would have commercial auto insurance for their delivery vans. The insurance helps pay for repairs, replacements and medical expenses when accidents occur. The coverage can also cover financial losses for a business as a result of a vehicle being inactive.

This coverage is a smart investment for any business that uses vehicles. Federal and state regulations categorize these vehicles according to their weight. Common types of commercial vehicles include trucks, vans and buses used to transport goods or people.

Like with all insurance, the policyholder has to make monthly payments in order for the insurance to remain active. It might be cost effective to pay a lump sum instead of a monthly premium.

Types of Coverage

Liability coverage ensures that drivers and passengers of commercial vehicles receive compensation to pay for medical expenses after accidents. Collision insurance covers minor and major fixes to the exterior and interior as a result of a crash with other vehicles or objects. Comprehensive insurance can pay for damage made by vandalism, fire and severe weather.


Commercial auto insurance protects business vehicles. When an accident or damage occurs, the business is assured of receiving financial assistance.