The primary difference between commercial and personal auto insurance is a commercial policy has more specialized coverage for a single or multiple drivers and tends to have higher liability coverage limits. It is designed to ensure you’re not leaving your business vulnerable to costly risks and expensive losses.

And while a personal and commercial auto insurance is similar, in most cases a personal policy will not cover you when driving for business use and commercial policy will not provide coverage when driving for personal use.

Any vehicle that is used to transport materials, tools and equipment, packaged goods or people should have a commercial auto policy. Whether you’re a plumber, electrician, travelling salesman, Uber driver or restaurateur with a fleet of food delivery vans, you need this protection.

Employees that use business vehicles must also be listed as drivers on a commercial policy. Independent contractors and small business owners need to safeguard themselves from third-party liability and property damages that may occur when using any vehicle for business purposes.

Commercial auto insurance provides you with third-party liability protection if you or an employee is involved in an accident. You’re also covered against theft, vandalism, or damage. Polices include protection if you or employees are injured, including medical expenses. You’ll have coverage for goods when in transport to customers and will also get a replacement vehicle when a damaged vehicle is being repaired.

Yes. Collision coverage in your commercial auto policy will help pay to repair or replace your vehicle if it’s damaged or a total loss resulting from an accident with another vehicle. Without it, you would be responsible for paying for all damages. Comprehensive coverage protects your vehicle from damages resulting from a natural disaster, vandalism and theft.

All perils combines collision and comprehensive coverage. It would also cover you for damages if an employee or member of your household steals the vehicle. Specified, or named perils, protects vehicles against those specifically named in your policy, such as theft or weather-related damage.