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2.0 Commercial Auto

Updated

Understanding Commercial Auto Insurance Coverage for Vendors

Commercial auto insurance is a required component of compliance for many vendors operating within the VIVE platform. Whether a vendor uses company vehicles or personal vehicles for business activities, appropriate coverage must be in place to protect both the business and its clients.

This article explains the different types of auto insurance coverages vendors may carry, why each is important, and how it applies to VIVE’s compliance standards.

What is Commercial Auto Insurance?

Commercial Auto Insurance provides liability and physical damage coverage for vehicles owned, leased, rented, or used by a business. If your company uses vehicles to transport materials, visit client properties, or make business deliveries, this coverage is typically required.

Hired and Non-Owned Auto (HNOA) Insurance

If your business uses employee vehicles or rentals for work purposes, you may need Hired and Non-Owned Auto (HNOA) insurance. 

HNOA Coverage Applies To:

  • Rented or leased vehicles used for business purposes

  • Employee-owned vehicles used for business errands (e.g., supply runs, bank deposits)

Example: If an employee drives their personal car to deliver materials and causes an accident, your business could be sued. HNOA insurance protects against liability claims in such cases.

Why Personal Auto Policies May Not Be Enough

Personal auto insurance generally excludes coverage for business use. If a personal vehicle is used for company business and an accident occurs:

  • The employee may be personally liable

  • Your business could still be named in a lawsuit

  • Your personal policy may deny the claim entirely

Always check policy language and clarify with your insurance agent.

Coverage Types Explained

Vendors may carry different types of commercial auto coverage depending on their business operations. Below is a breakdown of each:

1. Any Auto Coverage

  • Broadest form of coverage.

  • Covers any vehicle, whether owned, hired, leased, or newly acquired during the policy term.

  • Ideal for businesses with large or rotating vehicle fleets.

2. Owned Auto Coverage

  • Covers vehicles titled to and owned by the business.

  • May include trailers or semitrailers only while attached to a covered power unit.

  • Does not include rented, borrowed, or employee-owned vehicles.

3. Scheduled Auto Coverage

  • Covers only the vehicles listed on the insurance schedule.

  • No coverage for vehicles that are not explicitly named.

  • Common for businesses with a limited, known set of vehicles.

4. Hired Auto Coverage

  • Covers vehicles that are rented, hired, or leased for company use.

  • Excludes vehicles rented or borrowed from employees or their households.

  • Often used for companies that rely on short-term rentals or transport vans.

5. Non-Owned Auto Coverage

  • Covers vehicles used for business but not owned by the company.

  • Typically includes employee vehicles used for business errands.

  • Protects the business if it's named in a claim resulting from employee driving.

Example: An employee drives their own car to pick up materials and causes an accident. Non-Owned Auto coverage helps protect the business from liability.

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Need More Help?

For further assistance, contact VIVE's customer service:

Available 9:00 am - 6:00 pm Monday - Friday EST

  • Online chat under the "Help" icon
  • Email: support@getvived.com
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