Commercial | Business Auto Insurance

As a business owner, protecting the vehicles used in your operations is essential. Commercial auto insurance provides important financial protection for cars, trucks, vans, and other vehicles used for business purposes. Aspen Insurance Agency offers commercial auto insurance policies for vehicles your business owns, leases, or rents. Our licensed agents will help you choose coverage that fits your business needs and meets state insurance requirements.

Your Business Owners Policy (BOP) does not provide coverage for vehicles, so a separate commercial auto policy is required. Most states require liability insurance for bodily injury and property damage for accidents involving business vehicles. Many states also require uninsured or underinsured motorist coverage and medical payments coverage, known as Personal Injury Protection (PIP) in some areas. You can also add physical damage protection for vehicles owned, leased, or hired by your business.

Do You Need a Business Auto Policy

Your agent will ask how vehicles are used in your business and who drives them. They will also ask whether vehicles are owned, leased, or rented, and whether employees use their personal vehicles for business purposes. These details determine the types and levels of coverage your business needs.

A commercial auto policy provides higher liability protection than a personal auto policy. The recommended minimum for most businesses is one million dollars. Many companies choose even higher limits for stronger protection.

Will a Personal Auto Policy Cover Business Use

A personal auto policy may cover limited business use but will not cover vehicles used primarily for business or vehicles owned by a business. Personal policies also may not provide high enough limits to protect your business in a serious accident.

For example, if you are driving your personal car for business and cause an accident with multiple injuries, your personal auto policy may pay only up to its limit and will not defend your business. The remaining damages could fall on your company. For this reason, relying on personal auto policies for business travel can leave your business exposed.

Personal umbrella policies also generally exclude business use of vehicles.

What Vehicles Are Covered

The scope of coverage in a commercial auto policy depends on the options you select. Coverage options include:

• Autos your business owns, hires, or leases
• All autos used for business, including personal vehicles driven by employees

Most businesses choose the second option for the broadest protection.

Make Sure the Right Insured Is Listed

The owner of the vehicle must be listed correctly on the policy. If you use the same vehicle for personal and business purposes, notify your insurance agent about who holds the vehicle title. This helps avoid complications during a claim.

Physical Damage Coverage

Commercial auto policies offer three types of physical damage protection:

Collision Coverage

Protection for damage resulting from a collision with another object or vehicle over-turn.

Comprehensive Coverage

Covers damage from events other than collision, including theft, fire, vandalism, explosion, falling objects, flood, animal collisions, and other listed causes.

Specified Perils Coverage

Covers only the perils specifically named in the policy, often including fire, theft, explosion, and other limited causes. This option usually has a lower premium.

For businesses with large fleets, it may be more cost effective to insure only newer or more valuable vehicles for physical damage.

How Claims Are Paid

Commercial auto physical damage claims are based on Actual Cash Value (ACV), which is the market value of the vehicle at the time of loss. The insurer will pay the lesser of the ACV or the cost to repair or replace the vehicle. Depreciation and vehicle condition affect how much is paid in a total loss.

The insurer may pay the claim in money, repair the vehicle, or replace it. For theft claims, the insurer may return the recovered vehicle and pay for related damages.

Get a Commercial Auto Insurance Quote

Looking for reliable commercial auto insurance in Colorado or nationwide? Contact Aspen Insurance Agency today for a personalized quote and more information.

About Aspen Insurance Agency

Aspen Insurance Agency is based in Denver, Colorado, and serves clients nationwide. As a familyowned agency, we work with multiple insurance carriers to offer affordable and comprehensive insurance solutions. We provide personal, commercial, and professional insurance to residential and commercial clients, helping you secure the coverage you need at the lowest possible cost.