What Does Commercial Auto Insurance Cover, Exactly?

  • Commercial auto insurance is required by law in the state of New Jersey.
  • If an employee is involved in an accident with a company vehicle on a business-related errand, your commercial auto policy will cover the damages.
  • Contact David G. Sayles Insurance Services at 1-800-439-0292 to learn about our commercial auto policy options!


Our commercial auto insurance experts help our clients select the most reliable policy for their business.


To help you select the best policy based on your needs, we’ve put together a list of what the standard commercial auto insurance policy covers.  The extent of coverage depends on the individual policy, but here are the standard expenses covered with almost every option:


  • Auto accident liability. If an employee is found at-fault for an accident while on a business errand, driving a company vehicle, your commercial auto policy will cover the cost of repairing the other person’s vehicle.  The policy will also cover legal expenses in the event the other person decides to file a lawsuit over the accident.


  • Medical expenses. Some commercial auto policies include medical coverage.  This will pay for all or part of the medical expenses of an employee who is injured in an accident in a company vehicle.  If your policy includes medical coverage, it will pay for these expenses regardless of who caused the accident.  That makes a commercial auto policy with medical coverage a great option for businesses that see frequent use of company vehicles, such as delivery services.


  • Physical damage. If your company has a lot of vehicles, it’s inevitable that they’ll get damaged from time to time.  This damage may result from vandalism, fallen trees or even ice if your business is in a particularly cold area.  Many commercial auto insurance policies will cover the cost of repairing company vehicle damage, including replacement parts.


  • Uninsured motorists. If an employee is hit by an uninsured motorist while driving a company vehicle, your commercial auto policy will cover the costs of medical care and vehicle damages caused by that person.  This is important.  Without that coverage, you could be stuck paying out-of-pocket for expenses that resulted from someone else’s negligence.


We hope you enjoyed learning about the various coverages offered by commercial auto insurance policies.  Contact our agency today so we can help you pick the best policy for your business!