Can Commercial Auto Policies Cover Personal Use? 

When running a business, using vehicles for both work and personal errands is common. If you have a commercial auto policy in Virginia, you may wonder if it will cover personal use, such as running to the grocery store after a workday. Here’s what you need to know about how commercial auto insurance handles personal use and what options may be available.

What Commercial Auto Insurance Covers

A commercial auto policy is explicitly designed to cover vehicles used for business purposes. This includes protection for business-related accidents, liability and damage to business vehicles. Commercial policies usually offer higher liability limits, given that business operations often involve higher risks than personal use.

Standard coverage generally includes liability, collision, comprehensive, uninsured/underinsured motorist protection and medical payments.

However, personal use of a commercial vehicle can be a gray area. Some commercial policies have limited allowances for personal use, while others may strictly exclude it. Always review the specifics of your policy or consult with your insurance agent to clarify personal use coverage limitations.

Adding Personal Use Coverage to a Commercial Auto Policy

If you or your employees frequently use business vehicles for personal reasons, consider adding a personal use rider or endorsement to the commercial policy. This add-on may help bridge the gap, offering extended protection if an accident occurs while running nonwork-related errands.

Another alternative is to purchase a non-owned vehicle endorsement, which may cover personal vehicles occasionally used for business purposes. This type of coverage may benefit businesses where employees use personal vehicles to run business errands.

Tailoring Coverage for Peace of Mind

Insurance needs vary based on your business type and how often business vehicles are used for personal activities. Work with Academy Insurance Agency to explore policy customizations, such as personal use endorsements or other specialized coverages, to ensure you have the protection you need without any gaps. Contact us today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.