Minnesota Commercial Auto Insurance
Protect Your Vehicles, Drivers & Business
Keep Your Business on the Road With Coverage Built for Real-World Risks
Commercial auto insurance helps protect your business when vehicles are used for work-related driving, including deliveries, job site travel, hauling equipment, and transporting products or employees. If an accident happens, the right policy can help cover property damage, injuries, medical costs, and legal expenses that could otherwise create major financial strain. It can also help protect your business vehicles from damage, theft, vandalism, and weather-related losses depending on the coverages you choose. For many businesses, commercial auto insurance is a must-have for staying compliant, protecting drivers, and keeping operations running smoothly.
At Truax & Associates in Faribault, MN, we help business owners choose commercial auto insurance that fits how they actually use their vehicles, not a one-size-fits-all personal auto policy. Whether you have one work truck or a growing fleet, we’ll help you compare coverage options, understand Minnesota requirements, and avoid gaps that can lead to costly surprises after a claim.
What Does Commercial Auto Insurance Cover?
Commercial auto insurance is designed to protect vehicles used for business purposes and the people driving them. Depending on your policy, coverage may include:
- Liability coverage for bodily injury and property damage
- Collision coverage for damage to your vehicle after an accident
- Comprehensive coverage for non-collision damage (theft, vandalism, hail, fire)
- Medical payments or personal injury protection (PIP), where applicable
- Uninsured and underinsured motorist coverage
- Coverage for owned, leased, and in some cases hired vehicles
Coverage can vary based on vehicle type, business operations, and carrier guidelines, so it’s important to confirm what your policy includes before you need it.
Who Needs Commercial Auto Insurance?
If a vehicle is used for business purposes, personal auto insurance may not be enough. You may need commercial auto coverage if your business:
- Owns or leases vehicles used for work
- Has employees who drive for business tasks
- Transports tools, materials, or equipment to job sites
- Makes deliveries or pickups
- Uses vehicles that are titled to the business
- Requires proof of insurance for contracts or job bids
Commercial auto insurance is common for:
- Contractors and construction companies
- Landscapers and property maintenance teams
- Delivery and service businesses
- Trades like HVAC, plumbing, and electrical
- Cleaning companies
- Restaurants with delivery drivers
- Real estate and property management teams
If driving is part of your business, commercial auto insurance is one of the smartest ways to reduce risk.
Commercial Auto Insurance FAQs
1. What is commercial auto insurance and what does it cover?
Commercial auto insurance is a policy designed for vehicles used for business purposes, such as work trucks, delivery vehicles, and company cars. It typically covers liability for injuries and property damage, and it may include physical damage coverage for your vehicles. Coverage options can also include uninsured motorist protection and medical-related coverages. The exact protections depend on your policy structure and business needs.
2. Do I need commercial auto insurance if I use my personal vehicle for work?
You might. Many personal auto policies have exclusions or limitations when a vehicle is used for business tasks like deliveries, transporting tools, or visiting job sites. If you or your employees drive personal vehicles for work, hired and non-owned auto coverage may be an important addition. Truax & Associates can help you confirm what your current policy covers and where you may be exposed.
3. What is hired and non-owned auto insurance?
Hired and non-owned auto coverage helps protect your business if you rent, borrow, or rely on employee-owned vehicles for business use. It can provide liability protection if an accident occurs while the vehicle is being used for work. This is especially helpful for businesses with sales teams, service calls, or errands run in personal cars. It can be a major gap-filler for businesses that do not own vehicles but still have driving exposure.
4. How much commercial auto liability coverage should a business carry?
The right liability limit depends on how often you drive, where you operate, and the potential severity of an accident. Many businesses choose higher limits to better protect against lawsuits and major claims. Some contracts and job sites also require specific minimum limits before you can start work. A coverage review can help you choose limits that match your risk and compliance needs.
5. Is commercial auto insurance required in Minnesota?
In many cases, yes. Minnesota requires certain minimum insurance coverages for vehicles, and businesses using vehicles for work often need commercial auto insurance to properly meet those requirements. The right policy also helps protect your business beyond basic legal minimums. Truax & Associates can help you understand what’s required and what’s recommended for your specific industry.
Commercial Auto Insurance Carriers
