Commercial Auto Insurance for Minnesota Businesses
If your business owns vehicles, or if employees regularly use vehicles for work, commercial auto insurance is an important coverage to evaluate. Personal auto policies typically exclude or significantly limit coverage when a vehicle is used for business purposes — a gap that can leave your business exposed.
What Commercial Auto Insurance Does
Commercial auto insurance provides liability coverage if a business vehicle causes bodily injury or property damage to others. It may also provide physical damage coverage for your own vehicles — covering collision, fire, theft, vandalism, and other covered perils.
Unlike personal auto insurance, commercial auto policies are designed for the exposures that come with business use — higher mileage, multiple drivers, heavier vehicles, and cargo. Coverage can be tailored to the type of vehicle and how it is used.
Commercial auto policies can cover a range of vehicles: cars, pickup trucks, vans, box trucks, flatbeds, dump trucks, and specialty vehicles. The appropriate coverage depends on the vehicle type, its use, and who drives it.
Who Typically Needs Commercial Auto
Any business that owns vehicles used for business purposes should carry commercial auto insurance. This includes contractors who drive to job sites, delivery businesses, businesses with service fleets, and any company whose employees regularly drive for work. Even businesses that do not own vehicles may need hired and non-owned auto coverage if employees use their personal vehicles or rental vehicles for business purposes.
Exposures This Coverage May Address
Third-party liability
Your business vehicle causes an accident that injures another person or damages their property. Commercial auto liability may respond to these claims, including legal defense costs.
Physical damage to your vehicle
Your business vehicle is damaged in a collision, stolen, vandalized, or damaged by fire, hail, or flooding. Collision and comprehensive coverage may respond to these losses.
Hired auto liability
An employee rents a vehicle for business purposes and causes an accident. Hired auto liability may respond to claims arising from rented or borrowed vehicles used for business.
Non-owned auto liability
An employee uses their personal vehicle for a business errand and causes an accident. Non-owned auto liability may provide coverage for the business's liability in these situations.
Uninsured and underinsured motorist
Your business vehicle is involved in an accident caused by a driver with no insurance or insufficient insurance. Uninsured/underinsured motorist coverage may help cover your losses in these situations.
Medical payments
Occupants of your business vehicle are injured in an accident, regardless of fault. Medical payments coverage may help pay for their medical expenses.
Important Limitations and Exclusions to Understand
- Personal use of a business vehicle may be covered, but the policy terms vary. Confirm with your agent how personal use is treated under your policy.
- Vehicles used for hire — such as rideshare, taxi, or delivery-for-hire operations — typically require specialized coverage and may not be covered under a standard commercial auto policy.
- Cargo carried in or on the vehicle is typically not covered by commercial auto. Motor truck cargo insurance or inland marine coverage addresses cargo losses.
- Vehicles used primarily off-road or on private property — such as farm equipment or construction equipment — are typically not covered under a commercial auto policy. Separate coverage is needed for those vehicles.
- Drivers with poor driving records or certain violations may be excluded from coverage or result in higher premiums. Carrier underwriting guidelines vary.
Information Typically Needed to Evaluate Coverage
- Vehicle schedule — year, make, model, VIN, and use for each vehicle
- Driver list — names, dates of birth, and driver's license numbers for all drivers
- Annual mileage estimates and radius of operation
- Description of how vehicles are used — deliveries, client visits, hauling equipment, etc.
- Whether employees use personal vehicles for business purposes
- Prior auto claims history — typically three to five years
Related Coverages to Consider
General Liability
Covers third-party bodily injury and property damage from your operations — separate from auto liability.
Learn moreWorkers' Compensation
Covers employee injuries, including injuries sustained in a vehicle accident while working.
Learn moreCommercial Property
Covers business property — tools and equipment in a vehicle may need separate inland marine coverage.
Learn moreBonds
Trucking and transportation businesses often need both commercial auto and surety bonds for licensing.
Learn moreIndustries We Commonly Help
Frequently Asked Questions
Coverage availability, terms, conditions, exclusions, and limits vary by carrier and individual risk. The information on this page is general in nature, does not constitute legal advice, and does not guarantee that any specific loss will be covered. Consult your policy documents for the terms that apply to your coverage.