Commercial Auto Insurance in Florida: What Businesses Need to Know
If your business owns, leases, or regularly uses vehicles for business purposes, Commercial Auto Insurance can help protect your business from the financial risks of an accident.
Whether you have one work truck or a fleet of delivery vehicles, the right coverage depends on how the vehicles are owned and used, who drives them, what they carry and where they travel.
Who Needs Commercial Auto Insurance?
Businesses should consider commercial auto coverage when vehicles are used for business activities such as:
Delivering products or materials
Visiting customers or job sites
Transporting equipment
Making service calls
Carrying employees or customers
Using trucks, vans or other vehicles for business operations
If you use a personal vehicle for business, don't assume your personal auto policy automatically provides the coverage your business needs. Business use may be limited or excluded depending on the policy and insurance company.
What Does Commercial Auto Insurance Cover?
Liability Coverage
Commercial auto liability helps protect your business when a covered vehicle causes bodily injury or property damage to others.
For example, if an employee causes an accident while driving a company vehicle, the business could face significant medical expenses, property damage claims and legal costs.
Comprehensive Coverage
Comprehensive coverage protects business vehicles from many losses that aren't caused by a collision, such as:
Theft
Fire
Vandalism
Windstorm
Falling objects
Animal strikes
Collision Coverage
Collision coverage can pay for damage to a covered business vehicle resulting from a covered collision, subject to the policy deductible and terms.
Uninsured/Underinsured Motorist Coverage
UM/UIM coverage can help protect your business and drivers when they're injured in an accident caused by someone who doesn't have enough insurance.
Hired & Non-Owned Auto
Hired and Non-Owned Auto (HNOA) coverage can be important for businesses that use vehicles they don't own.
Examples include:
Employees using personal vehicles for business errands
Renting vehicles for business trips
Employees using their own vehicles to visit customers
HNOA generally provides liability protection for certain business uses of vehicles the business doesn't own; it does not generally insure the employee's personal vehicle itself.
Florida Commercial Auto Insurance Requirements
Florida's requirements depend on the type and use of the vehicle.
Florida law requires certain commercial motor vehicles to carry additional liability limits based on gross vehicle weight. For example, current Florida law requires:
$50,000 per occurrence for vehicles from 26,000 to 34,999 pounds
$100,000 per occurrence for vehicles from 35,000 to 43,999 pounds
$300,000 per occurrence for vehicles 44,000 pounds or more
Vehicles subject to federal motor carrier regulations must meet the applicable federal financial responsibility requirements.
Federal requirements can also apply to businesses involved in interstate transportation, and the required limits can vary depending on the type of operation and cargo.
Don't Just Buy the State Minimum
The minimum required insurance may not provide enough protection for your business.
A serious accident involving a company vehicle could result in significant medical bills, property damage and legal expenses. Many businesses choose higher liability limits based on their operations, contracts and overall risk.
Your insurance requirements may also be higher if you have contracts with customers, work for larger companies or are required to provide specific limits on a Certificate of Insurance.
What Businesses Should Tell Their Insurance Agent
When quoting commercial auto insurance, be prepared to discuss:
What vehicles the business owns or leases
How the vehicles are used
Where they travel
Who drives them
Employee driving records
What the vehicles carry
Whether vehicles cross state lines
Whether employees use personal vehicles for business
Whether vehicles are financed or leased
Providing accurate information helps your agent determine the appropriate coverage and limits.
Commercial Auto vs. Personal Auto
The biggest mistake a business owner can make is assuming that a personal auto policy is automatically adequate for business use.
If a vehicle is being used as part of your business operations, talk with your insurance agent about whether you need Commercial Auto, Hired & Non-Owned Auto, or another type of coverage.
Protect Your Business With the Right Auto Coverage
At Safeguard Insurance, we help businesses in Vero Beach, Sebastian, Fort Pierce and throughout the Treasure Coast review their commercial auto insurance needs.
Whether you have one company vehicle or an entire fleet, we can help you understand your coverage options, liability limits and potential gaps in protection.