If your company purchases a vehicle or a fleet of cars, or you use personal vehicles for business purposes, your business could be held liable for damages in an auto accident. Your commercial auto insurance policy may help pay for damages, including bodily injury and property damage. It may also help pay to repair or replace your company vehicle after an accident.
You may need commercial auto insurance if any of the following applies to your business:
Your company owns vehicles.
Your business provides company-owned cars to employees for both business and private use.
Your company operates certain personal vehicles that qualify as commercial vehicles due to their sizes or weights.
In California, all vehicle owners, including companies, must meet the state’s minimum liability insurance requirements.
If you have an auto loan or lease on a company vehicle, your lender may also impose certain minimum insurance requirements to help protect their financial stake in your vehicle.