Ohio Commercial Auto Insurance

For many small businesses, the vehicle is the mobile hub of the operation—whether it’s a contractor’s pickup, a local caterer’s delivery van, or a real estate agent’s sedan. Relying on a personal auto policy for business use is one of the most common and dangerous mistakes a small business owner can make.

If you use a vehicle for any business purpose, you need Small Business Auto Insurance (often called Commercial Auto Insurance). Every state in the country requires commercial vehicle Liability Insurance, at a minimum, regardless of whether you own, lease, or rent. Whether you have one car you scoot around town in to make deliveries or a fleet of box trucks, if the vehicles are used for business or registered as commercial vehicles, you need this insurance. It’s a specialized policy designed to protect your assets, your employees, and your business’s financial future.

Here is a breakdown of what commercial auto insurance is, why your business needs it, and the key coverages to look for.

Here are just a few examples:

You are an independent contractor who uses your pickup for business
You are a restaurant or catering business with a few box trucks that make deliveries
You have a family farm that transports produce or livestock

One business blunder we’ve seen more than once: business owners – particularly small business owners – relying on their own personal Auto Insurance, or letting employees use their own cars to conduct business. That’s a risky practice, exposing your business and personal assets to liability should an accident occur. Most personal policies won’t cover an accident that happens in the course and scope of doing business. That’s why you need Commercial Auto Insurance. It typically includes:

Liability Insurance: Bodily Injury, Property Damage, and Uninsured / Underinsured Motorist
Physical damage coverage: Collision, Comprehensive

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The Critical Difference: Commercial vs. Personal

The biggest risk you face is the coverage gap between a personal auto policy and a true commercial policy.

Feature	Personal Auto Policy	Commercial Auto Policy
Primary Use	Commuting, personal errands, family use.	Transporting goods/equipment, making deliveries, visiting job sites, carrying customers.
Liability Limits	Lower limits (often $100k–$300k) that may not cover a serious business lawsuit.	Higher limits (often $1M+) that align with greater business risk and asset protection.
Claim Coverage	Will typically deny a claim if the vehicle was being used for a commercial purpose at the time of the accident.	Covers the vehicle and the business’s liability exposure, protecting all business assets.

The Bottom Line: If your vehicle is used to generate revenue, a personal policy will almost always deny a major liability claim, leaving your business assets fully exposed to a lawsuit.

Commercial Auto: Small Business vs. Large Fleet

The term “Commercial Auto Insurance” covers everything from a single landscaper’s pickup to a fleet of 50 semi-trucks. The core coverage is the same, but the scale and regulatory complexity introduce key differences:

Factor	Small Business Commercial (Local Contractor, Delivery)	Large Fleet Commercial (Trucking, Transportation)
Regulation	Primarily driven by state laws.	Heavily regulated by Federal DOT/FMCSA. Requires specific compliance (e.g., US DOT number, IFTA).
Risk Profile	Lower—routes are local, mileage is low, and cargo is often non-hazardous.	High—long-haul routes, high mileage, increased accident risk, and specific cargo liability.
Required Limits	Minimum $500,000 up to $1,000,000 Combined Single Limit (CSL).	Mandatory minimum $750,000 up to $5,000,000 CSL. Many brokers/shippers require the higher limit.
Special Coverages	Often needs tool/equipment coverage endorsement.	Needs specialized policies like Motor Truck Cargo, Non-Trucking Liability, and Refrigeration Breakdown.
Underwriting	Based heavily on owner/driver MVR and vehicle type.	Based heavily on CSA scores, loss history, and DOT compliance (e.g., MVR monitoring systems).

Key Coverages Your Small Business Needs

A strong Commercial Auto policy consists of several components designed to handle the increased liability of a business vehicle.

Coverage	What It Protects	Why It’s Essential
Liability Coverage	Injuries or property damage that your business vehicle causes to others.	This is the most crucial part. It pays for the other driver’s medical bills, property repairs, and your legal defense costs if you are sued.
Physical Damage	Your business vehicle itself (whether it’s a car, truck, or van).	Includes Collision (damage from an accident with another vehicle or object) and Comprehensive (damage from non-collision events like theft, fire, hail, or vandalism).
Uninsured/Underinsured Motorist (UM/UIM)	You, your employees, and your vehicle if you are hit by a driver who has no insurance or insufficient insurance.	Protects your business from having to pay for employee injuries or vehicle repairs even when the other driver is at fault.
Medical Payments	Medical bills for you or your employees/passengers injured in an accident, regardless of who was at fault.	Provides fast, immediate payment for smaller injuries, often reducing the likelihood of a larger lawsuit.

If you answer “Yes” to any of these questions, you need a commercial policy:

Do you use the vehicle to transport tools, equipment, or products? (e.g., Construction, landscaping, catering)
Do you use the vehicle to transport people for a fee? (e.g., Shuttle service, taxi service)
Do you have employees who drive company-owned vehicles?
Does your vehicle have commercial plates, permanent logos, or specialized equipment? (e.g., Snowplow attached, refrigeration unit)
Is the vehicle registered in the name of your corporation or LLC?

Factors That Determine Your Cost

1
Vehicle Type and Weight: A standard commercial sedan will cost less than a heavy-duty pickup or a box truck, as larger vehicles pose a greater risk of causing substantial damage in an accident.
2
Driving Records: The driving history of every employee who will be listed on the policy is a major factor. A single accident or a DUI can significantly increase your premiums.3
3
Industry/Cargo: Businesses that haul hazardous materials, high-value cargo, or drive long distances (like truckers) will pay more than those with local, low-risk routes (like an office supply delivery service).
4
Policy Limits: The higher your liability limits (e.g., $1 million vs. $500,000), the more you will pay, but the more protected your business will be.

Ready to protect your mobile assets?

Don’t let a coverage gap put your business at risk. Contact Hitchings Insurance today for a free consultation on a Commercial Auto Insurance plan tailored to your small business operations in Ohio and beyond.

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The right Ohio Commercial Auto Insurance coverage for you depends on the nature of your business, who or what the vehicle transports, and how much you drive each day. There may be other considerations or regulations that come into play that would warrant additional coverage. For example, Gap Insurance, Employees as Insureds, or Truck Liability, if you have large trucks.

At Hitchings Insurance, our licensed professionals are experts in identifying your business exposures, sourcing, and quoting the right coverage from among our trusted insurance partners.

Learn why so many Ohio and Michigan businesses trust Hitchings Insurance Agency to protect their business vehicles though Commercial Auto Insurance. Discover the difference yourself – fill out a quote form or call us at 419-423-9145.