7 Questions to Ask Before Upgrading to Commercial Auto Insurance

Many entrepreneurs and small business owners use their personal vehicles for business—but this practice can be risky. In the event of an accident, your personal auto insurance policy might not cover you for business use, while your business owner’s policy (BOP) isn’t likely to help unless you’ve purchased a commercial auto add-on.

Not sure if you need to upgrade your insurance policy? Ask yourself these seven questions.

  1. Are any of your vehicles registered to a business?
    This applies if your vehicle is registered to a business, partnership, or doing business as (DBA) entity.


  2. Do you use your personal vehicle to transport goods or conduct services?
    Whether it’s construction materials or traveling between client offices, it counts.


  3. Do you earn money by transporting people or property?
    This puts you at risk of significant on-road exposure, so talk to your independent insurance agent about your options if this is true.
  4. Is your vehicle built for working or hauling?
    A vehicle with a gross weight of more than 10,000 pounds or one that is equipped with special features — like a snowplow — falls into this category.
  5. Are you driving the vehicle regularly for business use?
    Think of regularly as more than three times a month — not including commuting, of course.
  6. Do employees routinely drive your vehicle?
    This applies if the driving is part of their job responsibilities.
  7. Does your business use non-owned or hired vehicles?
    In this case, employees may be using their personal vehicles to conduct business or you may routinely drive rental cars for business purposes.

If you answered yes to any of the above questions, it’s likely that you need to upgrade to a commercial auto policy. However, guidelines may vary, so contact your independent insurance agent today to discuss your individual needs.

This website is general in nature, and is provided as a courtesy to you. Information is accurate to the best of Liberty Mutual’s knowledge, but companies and individuals should not rely on it to prevent and mitigate all risks as as an explanation of coverage or benefits under an insurance policy. Consult your professional advisor regarding your particular facts and circumstance. By citing external authorities or linking to other websites, Liberty Mutual is not endorsing them.