Who Does Commercial Auto Insurance Cover?

Commercial auto insurance is essential for businesses that rely on vehicles for their daily operations. Understanding who is covered under a commercial auto insurance policy can help business owners make informed decisions about their coverage and how it applies in different situations.

Coverage for Drivers Listed on the Policy

Commercial auto policies typically name specific drivers authorized to operate the insured vehicles. These drivers may be full-time employees, part-time workers or even business owners who routinely use company vehicles for job-related duties. If these individuals are listed on the policy or otherwise approved under policy terms, they may fall within the scope of coverage when driving the insured vehicles for work.

In some cases, a policy might provide more flexible coverage through a designation such as “any employee” or “any permissive user,” depending on the policy. This broader approach allows for different team members to use company vehicles, especially in industries where drivers change frequently or temporary workers are used.

Coverage for Owned, Hired and Non-owned Vehicles

Many businesses also need coverage for vehicles they do not own directly. This can include rented or leased vehicles as well as personal vehicles driven by employees for business tasks. If employees use their own vehicles to visit clients, deliver goods or run errands, the company may consider other coverage options that address these non-owned vehicles.

Ultimately, commercial auto insurance is designed to follow the business activities rather than the vehicle. The people covered by the policy are those performing duties on behalf of the business while operating a vehicle that qualifies under the policy. The specific terms of coverage can vary based on the type of vehicle, its ownership status and the role of the person behind the wheel.

Learn More

Contact Ayala Insurance Services to evaluate your commercial auto insurance options and get a quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.