Commercial Auto Liability Insurance protects your business when a company-owned or business-use vehicle causes bodily injury or property damage to others. It helps cover medical bills, legal defense costs, and damage to other vehicles or property when you or your driver are found at fault. This coverage is required for most commercial vehicles and is especially critical for trucking operations due to the severity of potential injury claims.
The cost of Commercial Auto Liability Insurance is primarily driven by the liability limit you select, with higher limits costing more but providing greater protection. Insurers also consider factors such as vehicle type, radius of operation, type of cargo or work performed, driver experience and MVRs, prior claims, and whether you operate intrastate or interstate. Operations with higher exposure, longer routes, or past losses typically see higher premiums.
You’re driving a company truck when traffic slows suddenly and you rear-end a passenger vehicle. The other driver suffers injuries and their vehicle is heavily damaged. Medical bills total $65,000 and vehicle damage comes to $20,000, for a total liability claim of $85,000.
How coverage would work: If your Commercial Auto Liability limit is $1,000,000, the policy would respond to cover the injured party’s medical costs, property damage, and related legal expenses up to that limit. Liability coverage does not have a deductible in most cases, meaning the insurer would pay the covered claim amounts directly, subject to policy terms and conditions.
