What is Commercial Auto?
Commercial Auto coverage is very similar to your Personal Auto coverage. Commercial auto can cover liability and
physical damage much like a personal auto policy, but it is distinct
in the fact that commercial auto policies cover automobiles owned or used for business
purposes. If an organization buys a car to transport supplies from point A to point B, that car would be deemed "commercial" and would need to obtain Commercial Auto Coverage.
What if an employee
is driving their car on behalf of the company?
When cars are not owned by the company, but operate on
behalf of the company, then Hired/Non owned Auto Insurance is the applicable coverage. Hired/Non
owned Auto (HNOA) can cover employees who work on behalf of the company and their
vehicles. This coverage is only for business operation purposes. For example,
if an employee at a nonprofit drives supplies from one location to another for your
organization, the time in which they are driving to make the delivery would be
covered, but their daily commute to work in the morning would not be covered. Commercial Auto coverage for nonprofits can be purchased within a package policy.
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