What is Business Vehicle Insurance?

As a business owner, you will need some of the same insurance coverage for the cars, trucks, vans or other vehicles you use in your business as you do for vehicles used for personal travel.

Your Business owners Policy (BOP) does not provide any coverage for vehicles, so you must have a separate policy.

Most states require you to purchase liability insurance for bodily injury and property damage that may result from a vehicle accident occurring while you or someone from your organization is driving on business. Many states also require you to have uninsured/underinsured motorists coverage and/or medical payments coverage (known as Personal Injury Protection (PIP) in some states). You can also purchase physical damage coverage for vehicles your business owns, leases or hires.

The Business Auto Coverage Form (BACF) is the most commonly used contract for providing business auto liability insurance. Although the form refers only to autos, autos are defined to include cars, trucks, trailers, vans or other vehicles designed for use on public roads.

Each vehicle you use in your business can be separately scheduled, or listed on your policy along with corresponding coverage. In other words, you can choose different coverage, for your various vehicles, depending on the vehicles characteristics and the coverage you need for it.