Three Business Auto Coverage Gaps
You're running a business where vehicles matter. Employees make deliveries, someone runs out for supplies, and business auto coverage is easy to set up and forget. A few gaps tend to show up where you might not expect them. Here's what's worth a second look.
Personal Auto Doesn't Cover Business Use
Here's a common one: an employee uses their own car for a work errand: a supply run, a client visit, a quick delivery. Their personal auto policy usually limits or excludes business use; the exact line varies by insurer, but delivery, regular work errands, and ridesharing are the most commonly excluded activities. If something happens, that claim can get denied, and the business ends up holding the liability.
A hired and non-owned auto (HNOA) policy fills that gap by providing excess liability coverage when employees use personal vehicles for business purposes. It's typically added as a low-cost endorsement relative to the exposure it addresses, and depending on the policy, coverage can extend to employees as well as the business.
Company Vehicles Need More Than the Basics
If you own company vehicles, liability-only coverage usually isn't enough on its own. Comprehensive and collision protection, plus commercial-specific endorsements, account for how a company van or truck is actually used day-to-day.
It's a common assumption that basic commercial auto covers everything. Without collision and comprehensive added on, a routine fender-bender becomes an out-of-pocket cost instead of a covered one.
Rideshare and Delivery Often Fall Outside Standard Policies
If your business involves delivery, both personal and standard commercial auto policies tend to have gaps. Platforms like Uber and DoorDash are usually excluded because they carry a different risk profile than the policy was written for.
If any of this sounds like your business, it's worth a conversation about specialized coverage. It's easy to overlook simply because it's less common, but the exposure is real.
Your vehicles keep your business moving. Reach out, and let's make sure your coverage is keeping pace with it.
This content is from sources believed to be accurate and is for general information only, not tax or legal advice. Consult appropriate professionals for your individual situation. Copyright FMG Suite.
