Understanding Commercial Auto Insurance: What It Covers and Why It Matters

May 21, 2025
By
WellnessRead Staff

Commercial auto insurance is a specialized policy designed to protect vehicles used for business purposes. Whether you're running a delivery service, transporting tools and equipment, or operating a fleet of company cars, this type of insurance offers financial protection against accidents, damages, and liability claims.

Why Businesses Need Commercial Auto Insurance

Vehicles used for business face different risks than those used privately. A delivery van on the road all day or a contractor’s truck hauling heavy equipment is more exposed to potential accidents and wear. If a business vehicle is involved in an accident, personal auto insurance typically won’t cover the damages or liability.