If your business has employees who drive for work, contractors who use vehicles on the job, or company-owned vehicles, commercial auto insurance is not optional. Personal auto policies exclude business use, and that exclusion has real consequences when a claim is filed.

When a personal auto policy does not cover you

A personal auto policy is designed for personal use of a vehicle. Business use exclusions vary by carrier, but most personal auto policies exclude claims arising from using a vehicle to carry customers, deliver goods for compensation, or perform business services. The exclusion language typically covers regular business use, not an occasional errand. But what counts as regular is determined by the carrier at claim time, not by the policyholder at application time.

The risk is real. A plumber who drives his personal truck to job sites every day and causes an accident may find his personal insurer denies the claim on business use exclusion grounds. The claim denial comes after the accident, after the injured party has filed suit, after legal costs have started accumulating.

What commercial auto covers

A commercial auto policy covers vehicles used for business purposes, drivers on the business payroll, and the liability exposures that come with commercial driving. It covers bodily injury and property damage liability to third parties, collision and comprehensive on owned vehicles, medical payments for occupants, and uninsured motorist coverage. For businesses with fleets, it covers multiple vehicles and multiple drivers under a single policy.

The liability limits on commercial auto are typically higher than personal auto minimums. Most commercial leases and client contracts require $1 million in commercial auto liability. Georgia state minimums are insufficient for most commercial situations.

Hired and non-owned auto

Businesses that have employees driving their personal vehicles for company purposes need hired and non-owned auto coverage even if the business owns no vehicles. If a sales representative drives her personal car to a client meeting and causes an accident on the way, the business faces liability for that accident. Hired and non-owned auto covers the business liability for accidents in non-company vehicles used for company purposes. It is usually available as a BOP endorsement or standalone at modest cost.

Which carriers write Georgia commercial auto

Progressive Commercial is the largest commercial auto writer in Georgia and is consistently competitive for owner-operators, small fleets, contractors, and delivery operations. Hartford Commercial is strong for multi-vehicle accounts where the client also has BOP and workers comp. Travelers Commercial is competitive for mid-market fleets. Nationwide Commercial is a strong option when the account needs commercial auto combined with BOP or farm coverage.