Commercial Auto Liability Insurance
Liability insurance for commercial vehicles is an important coverage that's required by most states. It's a key part of any business auto or truck policy because it protects you if one of your vehicles causes injuries or property damage. It can pay medical expenses and legal costs if someone makes a claim against you.
What is commercial auto liability insurance?
Commercial vehicle liability insurance combines two coverages: bodily injury and property damage. It's a third-party protection, which means it helps pay if you're responsible for an accident that harms other people. It doesn't cover your own vehicles or medical bills.
Liability coverage is the core of any business auto policy. It protects your business if someone files a claim against you. It also helps you meet state insurance requirements. That support can give you peace of mind during unexpected events and help you stay focused on your work. Start a Progressive Commercial quote to learn more.
Are you looking for general liability insurance?
General liability insurance, like vehicle liability, covers bodily injuries and property damage to others. The difference is that it protects against accidents that don't involve your commercial vehicles. For example, if a customer slips and gets hurt at your office, general liability insurance can help pay their medical expenses. Learn more about general liability coverage for businesses.
Why is commercial auto liability insurance required?
Commercial auto liability insurance is required because it protects other people if your business vehicle causes injury or damage. Having coverage helps you meet:
- State laws: Almost every state requires businesses that use vehicles for work to have auto liability insurance. Minimum coverage amounts vary by location. Check your state's commercial auto guidelines for details.
- Federal regulations: The Federal Motor Carrier Safety Administration (FMCSA) sets rules for certain for-hire truckers operating under their own authority. These standards include carrying liability coverage and submitting truck insurance filings as proof of coverage.
- Contractual obligations: Many clients and partners require commercial auto liability insurance before doing business with you. Having coverage shows you're prepared, builds trust, and can open the door to more work opportunities.
Who needs vehicle liability insurance?
If your business owns, leases, or uses a vehicle for work, you need liability coverage. Even a single company vehicle must be insured to stay legal and protect you in case of an accident. This coverage is especially important for businesses that:
- Make deliveries
- Travel to customers or job sites
- Transport people or cargo for a fee
- Have employees driving for business purposes
Common industries and professions include:
- Contractors
- Landscapers
- Painters
- Mechanics
- Cleaning services
- Owner operator truckers
- Towing companies
- Delivery and courier drivers
- Food trucks
- Livery businesses
Progressive Commercial makes it easy to find vehicle liability coverage that fits your business. We insure more than 1,200 commercial auto business classes and can customize a policy just for you.
What does commercial auto liability insurance cover?
If you're at-fault for an accident, commercial auto liability insurance covers the following:
- Hospital and medical bills
- Funeral expenses
- Lost earnings
- Repair and replacement costs
- Legal fees
- Settlement costs
What's not covered by commercial auto liability insurance?
Liability insurance doesn't cover damage to your vehicles or certain types of losses. You'll need additional commercial auto coverages in these situations:
- Damage to your vehicle: Physical damage coverages like collision and comprehensive insurance can pay to repair or replace your vehicle if it collides with another object, overturns or rolls, and more. Uninsured/underinsured (UM/UIM) may help if another driver doesn't have enough liability insurance to pay for damages.
- Injuries to your drivers: Liability only covers injuries to others. UM/UIM can also help cover medical bills and rehabilitation costs if the other driver can't. Depending on your state, you can also add medical payments coverage or personal injury protection to pay for medical expenses for you or your employees.
- Cargo damage: Commercial auto liability doesn't cover the items you're transporting. To protect tools, equipment, or goods in transit, you can get cargo coverage or inland marine insurance, depending on what you haul and how you use your vehicle.
- Employees using personal autos for work: Personal auto policies exclude work-related accidents. But you can extend your liability protection with hired and non-owned auto insurance for employees who drive their own cars for business.
How much vehicle liability insurance do I need?
At the very least, you need enough vehicle liability insurance coverage to meet state minimum requirements, but you may want to choose higher limits to ensure your business is adequately protected.
You'll select your coverage limits when you get a quote. These determine the maximum amount that will be paid out in case of an at-fault accident. You can choose either split limits or a combined single limit (CSL).
Split limits are when your policy has separate amounts for the following:
- Maximum bodily injury payment per person
- Maximum bodily injury payment for all people in the accident
- Maximum total property damage payment for all property in the accident
For example, if you choose split limits of 15/30/10:
- Bodily injury per person: $15,000 would be the most your insurance company would pay to each person injured in an accident.
- Bodily injury per accident: $30,000 would be the most paid to all people injured in the accident.
- Property damage per accident: $10,000 would be the maximum payout for all property damaged in a single accident.
A CSL, on the other hand, merges both bodily injury and property damage coverage into one maximum amount for all injuries and property damage you cause per accident.
For example, if you selected a combined single limit of $1 million, your insurance company would pay up to that amount for all bills related to injuries and property damage.
An example of how vehicle liability insurance coverage works
You can't stop your van in time and rear-end the car in front of you. The other car's bumper is damaged, and the driver has a sprained wrist.
You have a combined vehicle liability limit of $300,000.
The bodily injury portion of your commercial auto liability policy would pay the other driver's $1,500 medical bills to treat their wrist. The property damage part would pay the $1,000 bill to replace the other car's bumper.
Since you chose a combined single limit of $300,000, your total liability expenses of $2,500 are completely covered by your insurance.
Vehicle liability insurance exceptions and restrictions
When choosing split limits for your vehicle liability coverage, it's important to know that property damage limits can't exceed your bodily injury per person limits. Other guidelines for commercial auto liability insurance include:
- Liability limits must meet your state's minimum legal requirements.
- All vehicles on a policy need the same liability limits.
- Trucks that require an insurance filing must meet FMCSA liability standards.
- Operating beyond a 300-mile radius requires minimum liability limits of $25,000/$50,000 or a combined limit of $50,000.
- Extra trailers are charged a flat fee for liability insurance.
- Vehicle type
- Number of vehicles
- Number of drivers
- Liability limits
- Average mileage
- Driving history
How much does vehicle liability insurance cost?
At Progressive Commercial, the average monthly rate for full coverage insurance ranges from $282 for business auto and $746-$954 for for-hire truckers.‡‡ These policies include vehicle liability insurance, as well as additional state-required coverages. Your exact commercial auto cost depends on factors like:
The easiest way to learn what you'll pay for vehicle liability insurance is to start an online quote and choose the limits and coverages your business needs most.
Why choose Progressive Commercial for commercial auto liability insurance
As the #1 commercial auto insurer in America,* Progressive Commercial has flexible coverage options, competitive rates, and expert service. We also offer liability limits up to $2 million in certain states to help drivers meet employer requirements.
If you're looking for commercial auto insurance that's right for your business, we have you covered. We can help you meet state auto insurance requirements, take advantage of available discounts, and explore other ways to save.
