If you have company-owned vehicles, you need a commercial automobile policy. A commercial auto policy provides the same kind of coverages as a personal auto policy, protecting the business against liability for injury or property damaged caused by vehicles you own or have responsibility for and for any physical damage they may cause. In addition, you will probably want to purchase physical damage coverage to protect your vehicles from damage or theft. If you own a significant number of vehicles, you may qualify for reduced “fleet” rates.
Sometimes small businesses rely on their personal auto insurance policies to cover the business use of their cars. While this can be an option, it’s something you need to arrange through your insurance company, since many personal policies exclude business use.
Business owners should also be aware that they might become liable when employees use their own cars for business purposes. You can cover this under your commercial auto policy. If you don’t have a commercial auto policy, you might be able to add this important coverage to your general liability policy with a non-owned and hired auto endorsement.