What You Might Be Missing in Your Commercial Auto Insurance Policy
If you own a business vehicle—or a fleet—you probably already have commercial auto insurance. But is your coverage actually sufficient for the risks your business faces? Most policies cover liability, collision, and comprehensive events—but in the fine print, key exclusions, policy limits, and lack of endorsements can leave your business dangerously exposed.
Here’s what smart business owners need to understand:
1. You Probably Need Higher Liability Limits Than You Think
The state minimums might technically make your policy “compliant,” but in reality, they won’t come close to covering a multi-vehicle collision or a lawsuit involving serious bodily injury.
For example:
A $100,000 liability limit might not be enough if your driver hits a luxury vehicle or causes a highway pileup.
Personal injury lawsuits in the U.S. can exceed $500,000–$1 million, and legal fees alone could wipe out your basic policy.
Tip: Consider a $1M+ liability limit and pair your policy with a commercial umbrella insurance plan.
2. Do You Have Symbol 1 vs. Symbol 7 Coverage? It Matters.
Insurance carriers use “symbols” to define what types of vehicles are covered:
Symbol 1: Any auto used for business purposes—owned, leased, hired, or borrowed. Best for full protection.
Symbol 7: Only specifically listed vehicles on the policy. If your employee drives a personal vehicle for work—you’re not covered.
Bottom line: If your business operations involve rental vehicles or client errands, Symbol 1 may be critical.
3. Gap in Hired & Non-Owned Auto Liability (HNOA)
Many business owners assume they’re covered when employees drive rental cars or personal vehicles for work. But that’s not true without HNOA coverage.
HNOA covers you if:
A team member uses their own car to pick up supplies and causes an accident.
You rent a van for an event and someone is injured during transport.
Common Mistake: Thinking your general liability policy will cover these—it won’t.
4. Do You Need Additional Insureds or Waivers of Subrogation?
If you're working with contractors, leasing vehicles, or entering into large contracts, you may be required to:
Name other parties as additional insureds
Include waivers of subrogation to avoid legal pushback if a claim arises
Failing to include these in your policy can make contracts void—or open you up to lawsuits.
5. Don’t Overlook Downtime & Rental Reimbursement
If your fleet vehicle is in the shop after an accident, can your business continue?
Standard policies don’t include:
Downtime coverage (lost income due to a non-functioning vehicle)
Rental reimbursement (cost to rent a replacement vehicle)
Add-ons like these ensure you’re not out of pocket while waiting on repairs.
Final Word: Commercial Auto Insurance Is NOT Set-and-Forget
Most businesses outgrow their policy structure within 12–18 months as they scale.
Review your policy at least once a year to update:
New vehicles or drivers
Expanded service areas or delivery zones
Contractual requirements with clients or vendors
Need help reviewing your policy?
At Starisks, we work with business owners to build smarter, better coverage—before problems arise.
Connect with Joel Goldman for personalized support on commercial insurance.
