Commercial Vehicle Insurance covers the vehicles that are company-owned in your fleet. It will not cover privately owned vehicles that your employees may drive to do work for your company unless that is the only purpose for that private vehicle.
Commercial Vehicle insurance if similar to the types of coverage you would have for your personal vehicle. Typically it covers legal costs if someone were to sue over damages they incurred that was caused by your vehicle, medical costs associated with injuries caused by the driver of your company vehicle, coverage to fix damages to the company car in a collision with another vehicle or damages to another vehicle where the driver or your company car is found to be at fault, damage from theft of vandalism and it includes uninsured motorist damages if your company car is hit by an uninsured motorist.
Things that are typically not covered by Commercial Vehicle Insurance include
- Contents in the vehicle
- Vehicles used for Rideshare programs (Uber or Lyft)
- Injuries to employees in the vehicle that would normally be covered by worker’s comp insurance
- Rented or Leased vehicles
Your company needs Commercial Vehicle Insurance if you own vehicles and use the cars to travel to and from job sites, transports business tools and equipment for work or transport employees or clients.