Commercial auto insurance is a policy designed to cover a business’ vehicles used for work purposes. If you use vehicles at any point in your line of work aside from commuting, you will need commercial auto insurance.

It is important to know the ins and outs of your policy so that you can avoid denied claims, however, as not everything—or everyone—is covered under a single commercial auto insurance policy.

Permissible Employees

If you have multiple commercial vehicles shared between employees, you may have an umbrella policy rather than a named policy. By not having a named policy, anyone who you give permission to drive the vehicle should be covered under its insurance. The insurance provider will still want to know who is operating the vehicle, however. Many business owners choose to assign certain vehicles to certain employees so that they can be sure who was driving at the time of the accident for insurance purposes.

On a named policy, you may have a list of names or even a single name on the policy alongside yours. For example, if you provide company cars only to your top executives, you may have the executive’s name on the policy with yours. Keep in mind that all of the factors influencing the rate of your business’ commercial car insurance will also be factored in when adding people to the policy. An employee’s driving record and credit score can both cause your commercial auto insurance premiums to change. Poor records or low credit scores can lead to a significant increase in commercial auto insurance premiums, so be sure to carefully vet all employees who may potentially be driving for your company.

Is Theft Covered Under Commercial Auto Insurance?

So what happens if you don’t give someone permission to operate one of your commercial vehicles? Or what happens if a disgruntled ex-employee chooses to keep their company car?

In this case, you should be covered for damages and injuries the thief causes as long as both the theft is reported and you have the right coverage. Comprehensive coverage on a car insurance policy covers theft, so make sure to check with your insurance agent that you have the proper insurance (and the right amount of coverage) for your vehicle. Every business is different and you will need a commercial auto insurance policy tailored for your company’s needs.

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