Commercial auto insurance works in some of the same ways as personal auto insurance, but it’s designed to cover a wider range of risks. Exact details will vary based on your state, your type of business, and type of vehicle, but here are a few typical coverages that you can expect from a commercial auto insurance policy.

Liability coverage

Commercial auto insurance can protect your business in case of damage to other people’s vehicles and property, and medical bills resulting from injury. Most states require drivers to have a minimum amount of liability coverage, and your business needs to follow these laws just like individual people are expected to.

Collision coverage

Commercial auto insurance can provide collision coverage to pay for repairs to your vehicle in case of a crash, whether or not another vehicle is involved. If you or an employee drives a company vehicle off the road or otherwise gets in an accident, this coverage can repair your vehicle.

Comprehensive coverage

What if your business vehicle gets damaged or destroyed in a fire, flood, other natural disaster, or gets stolen or vandalized, or is in a collision with a wild animal? These risks are covered by comprehensive coverage. If your business operates in an area that is vulnerable to hurricanes, wildfires, or other natural disasters, comprehensive coverage might be a must-have to protect your company’s vehicles and finances.

“Any auto” or “Non-owned auto” coverage

If you have employees who occasionally use their personal vehicles for business, or if you sometimes drive your personal vehicle to business meetings, you might not be adequately covered by personal auto insurance policies. If a crash happens during business activities, even if it’s your personal car, victims of a car crash can sue your business, as well as you personally.

Fortunately, you can design your commercial auto business insurance to include “any auto” or “non-owned auto” coverage. This can fill in the gaps in case your employee gets in a crash while driving back from a business errand to the office supply store, or in case your employee gets in a crash while driving between deliveries or job sites.