For small businesses, the line between what is considered a personal vehicle and a commercial vehicle is often blurry. Sometimes small business owners and employees use their personal vehicles to travel to job sites, transport equipment or deliver goods.
Personal auto insurance policies almost always exclude business use. That means you’re not covered if you get into an accident while driving for work (with the exception of your commute).
The main difference between personal and commercial auto insurance is who owns the vehicle. If your business owns a vehicle, it must be covered by commercial auto insurance.
Commercial auto insurance covers accidents that occur while you or your employees are driving a company vehicle. While both personal and commercial auto policies pay for legal and medical bills related to auto accidents, commercial auto insurance usually covers higher claims, different types of vehicles, and more complex legal issues.
A commercial policy typically insures all the business’s employees as additional insureds, which means every employee with a valid license can use the vehicle.