This term may seem a little confusing to some because the word “auto” is included. In reality, it’s about commercial vehicles of all types and used in many unique situations. While most medium to larger businesses understand all of the differences and uses for these types of coverages, many small businesses or newer businesses may be, and often are, confused about the scope and breadth of commercial insurance coverages.
Often one mistake made is to assume your regular personal auto coverage will cover business use. While there are some insurance riders which can be attached to your personal auto policy for this purpose, they are of limited value. If you’re in a legitimate full-time business, using your personal auto coverage with one of these riders is most likely not going to have satisfactory medical and/or liability coverage.
Depending on your type of business, you may find out that even with the rider the business was not really covered because it’s not a covered industry under the rider. If you have employees and they drive their own vehicles for your business, even if their running and errand for you off hours, you could be liable if something happens for damages and/or liability.