Do I need a commercial auto policy or can I use my personal auto insurance? Should I ask myself this question even if I am not a business owner? The answer depends on what you do.  

Take general contractors for example; they may own bulldozers and excavators necessary for their business operations. They need commercial lines of insurance to cover their business operations but what about pizza delivery drivers? The pizza delivery driver is just an employee using his or her own vehicle to deliver food. They aren’t a business owner but they are using their vehicle for the business; should they purchase a commercial auto policy?  What about Uber and Lyft drivers? They use their own vehicle as a taxi. Most Personal auto policies exclude delivery and taxi services because that is business use. If there are so many people using their personal autos for business purposes then are they driving without coverage? 

A person working for a local pizzeria, Uber or Lyft are covered by their respective employer; so they aren’t driving without coverage. This is a good thing because both the employee and business is protected. However, there may be gaps. Take Uber and Lyft for example - A driver is covered by their employer’s insurance when they have a passenger in the car but they aren’t covered when they are waiting for a passenger. This is a gap in coverage because most personal lines coverage do not cover them unless they have the rideshare endorsement. You may think this isn’t a big deal but what if you get in a wreck on route to pick up your passenger? If you do not have the rideshare endorsement your claim may be denied and you may be personally liable for any bodily injury or property damage. 

As business owner, you will want to take every step to make sure you are protected. Are your employees providing delivery or taxi services? If so, then get a commercial lines policy and get insured. If you still aren’t sure about what you need then ask yourself these three questions. 

1. Who owns the vehicle?

   • If your business owns the vehicle then chances are you will need a commercial auto policy.

2. What is the vehicle used for?

   • If the vehicle is used for anything more than driving to and from work than you need to talk to your agent. The occasional business errand can be endorsed on your personal lines insurance but business uses such as deliveries and taxi services require a commercial lines policy.

3. Are there required liability limits?

   • Commercial auto policies have higher limits. If you need higher limits then you will need a commercial auto policy.