Frequently Asked Questions about commercial auto insurance

Do I need commercial auto insurance if I use my personal vehicle for business?

Yes. If you use your personal vehicle to transport goods, carry heavy tools, visit multiple job sites, or make deliveries, your personal auto policy likely will not cover you in the event of an accident. Most personal policies in Pennsylvania and Maryland have specific exclusions for business use. A commercial policy ensures that both your vehicle and your business assets are protected during work-related tasks.

What is the difference between personal and commercial auto insurance?

The primary differences are liability limits and usage definitions. Commercial policies offer higher liability limits — often $1 million or more — to protect business assets from lawsuits. Personal policies are designed for commuting and everyday errands. Commercial insurance also covers specialized vehicles like box trucks and work vans, and can include Hired and Non-Owned coverage for employees driving their own vehicles on your behalf.

What is Hired and Non-Owned Auto (HNOA) coverage?

HNOA provides liability protection for vehicles your business uses but does not own. Hired coverage applies to vehicles you or your employees rent for business trips. Non-Owned coverage applies to personal vehicles owned by your employees when they drive them for business purposes — such as an office assistant picking up supplies or a salesperson visiting a client in Lebanon. This is a critical gap-filler for businesses that don't own a fleet but have employees on the move.

Are my tools and equipment covered under my commercial auto policy?

Typically, no. Standard commercial auto insurance covers the vehicle and liability — not the tools or materials inside it. To protect your equipment and cargo you will generally need an Inland Marine endorsement or a separate policy. We recommend bundling this with your auto coverage for seamless protection.

What are the commercial auto insurance requirements in PA and MD?

Pennsylvania requires medical benefits, bodily injury liability, and property damage liability on all business-registered vehicles. Maryland requires liability insurance, Uninsured/Underinsured Motorist coverage, and Personal Injury Protection (PIP). Because business risks are higher, we typically recommend limits well above state minimums to keep your company financially protected after a serious accident.

Can I bundle commercial auto with my other business policies?

Yes, and it often makes sense to do so. Many businesses pair commercial auto with General Liability Insurance or combine both into a Business Owner's Policy (BOP). This simplifies your coverage and can reduce your overall premiums. Learn more about Business Liability Insurance.

How does commercial auto insurance work with general liability?

Commercial auto covers vehicle-related incidents — accidents, damage, and driver liability on the road. General Liability Insurance covers non-auto risks, such as a customer slipping at your office or damage to a client's property while your team is on the job. For most businesses in Lebanon and Maryland, these two policies work together as a complete safety net. We often recommend combining them into a Business Owner's Policy (BOP) to simplify coverage and reduce costs.