Who Needs Commercial Auto Insurance
Commercial auto insurance is essential for any business that owns or uses vehicles for work-related purposes. It provides coverage for cars, trucks, vans, or other vehicles used in business operations, protecting against financial loss from accidents, theft, or damage. Cowan Insurance offers commercial auto insurance in Lakewood, CA, Bellflower, CA, Westminster, CA, Long Beach, CA, Downey, CA, Cerritos, CA and surrounding areas.
Businesses that own company vehicles—such as delivery trucks, service vans, or company cars—are the most obvious candidates for commercial auto insurance. For example, construction companies, delivery services, cleaning businesses, and landscaping firms all rely on vehicles to transport tools, materials, or employees. If these vehicles are involved in an accident, commercial auto insurance helps cover repair costs, medical expenses, and liability claims.
Even self-employed individuals and small business owners may need this coverage. Independent contractors such as real estate agents, electricians, caterers, or consultants who regularly drive for business purposes should consider commercial auto insurance, especially if they use their personal vehicle for work. Personal auto insurance typically excludes business use, meaning an accident during a work trip might not be covered.
Additionally, businesses that have employees using their own vehicles for company errands—such as delivering goods or visiting clients—should consider “hired and non-owned auto insurance.” This type of commercial coverage protects the company if an employee’s personal vehicle is involved in a business-related accident.
In summary, anyone who drives a vehicle for business purposes beyond commuting should have commercial auto insurance. It not only protects business assets but also ensures compliance with state laws and client requirements. Without it, a single accident could result in costly lawsuits or financial losses. Whether managing a fleet of trucks or using a single vehicle for deliveries, commercial auto insurance is a crucial safeguard for any business on the move. Interested in discussing this further? Call or email us anytime!