You need a commercial auto policy or business auto policy if you use the vehicle in your business operations. Examples are transporting tools to and from jobsites like a plumber's van, haul construction debris, use truck to tow a trailer used in business operation, transport good for a fee, deliver company products, employees regularly using the vehicle for business purposes, and the vehicle is registered to the company name. The commercial auto policy is also needed when higher limit of liability limit is required, usually if you are bidding for a job. Personal auto insurance can cover up to 300,000 liability per accident but commercial auto can cover you up to a million dollars.
When getting a certificate of insurance, it is important to understand what those checked boxes mean under the automobile liability section. Below are the description of covered auto designation:
Any Auto: It covers hired and other non-owned cars, and vehicles you purchase during your policy term.
Scheduled Autos: It covers only those autos described in the declaration page of the policy for which a premium charge is .
Hired Autos: It covers only those autos you lease, hire, rent or borrow. This does not include any auto you lease, hire, rent or borrow from any of your employees, partners (if you are a partnership), members (if you are an LLC) or members of their households.
Non-owned: It covers only those autos you do not own, lease, hire, rent or borrow that are used in connection with your business. This includes autos owned by your employees, partners (if you are a partnership), members (if you are an LLC) or members of their households but only while used in your business or your
personal affairs.
Combined Single Limit vs Split
Combined Single Limit (CSL) is the maximum amount the insurance company will pay to cover the entire claim. It limits the coverage for all components of a claim to a single dollar amount. It means the limit is for both the Bodily Injury and Property Damage Liability. The other type is called Split Limit Liability, which sets a maximum amount the insurance company will pay for bodily injury per person, one amount for bodily injury for the accident and one limit for property damage for the incident.