Who Is Covered by a Commercial Auto Policy?

Commercial auto insurance provides vital financial protection for businesses. It’s important to understand who is covered under an organization’s policy.  

At its most basic, the insured entity is the business that owns and operates the vehicle, but there may be additional individuals covered under a commercial auto policy. While it’s important to review the policy documents for specific details, in general, a commercial auto policy may cover the following: 

• Named drivers when operating a covered vehicle
• Business owners driving the insured vehicle for business purposes
• Employees driving the insured vehicle for business purposes
• Volunteers driving the insured vehicle to benefit the business 

How to Determine Who Is An Insured 
To determine who is insured under a commercial auto policy, refer to the Business Auto Coverage Form included in the policy documents. Look for the section titled «Who Is an Insured.» It typically includes three categories of insured individuals: 

• The named insured or company listed on the policy
• Permissive users, who are individuals driving a covered vehicle with permission from the insured person or company
• Omnibus insureds, who are individuals who may be held vicariously liable for an accident caused by a permissive user or named insured 

If you have concerns about your commercial auto insurance policy coverage, contact your agent promptly. 

Is Commercial Auto Insurance Mandatory in Texas? 
Texas requires commercial auto insurance for companies that use vehicles in their daily business operations. The state mandates minimum liability coverage to assist in covering a company’s legal liability in the event of an at-fault accident. 

In addition to liability coverage, your agent may recommend additional coverage options to protect your company’s vehicles, including: 

• Collision and comprehensive insurance to pay for repairs or replacements after a covered accident or incident.
• Uninsured/underinsured motorist coverage to cover damages to your company vehicle in an accident with a driver who lacks sufficient liability insurance.
• Hired and non-owned auto (HNOA) insurance to provide coverage for vehicles used for business purposes that your company does not own, such as rented or borrowed vehicles. 

Depending on your circumstances, your agent may also suggest the following policies and endorsements: 

• Medical payments (MedPay) coverage or personal injury protection (PIP)
• Umbrella insurance
• Replacement cost vehicle coverage
• Rental car reimbursement
• Roadside assistance
• Inland marine insurance 

To obtain commercial auto insurance, reach out to the agents at Primero Insurance Agency, serving the New Braunfels area. They are ready to assist you in creating a tailored insurance plan for your business. 

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.