Commercial · Auto
Commercial auto insurance for Michigan businesses
A business auto policy covers the vehicles your company owns, hires and borrows, plus the employees who drive them. We help you choose the coverage symbols, limits and Michigan no-fault options that fit how your vehicles are actually used.
Schedule a Coverage ReviewDo I need commercial auto insurance, or can I use my personal auto policy for business vehicles?
Personal auto policies are designed for personal use. A business auto policy is built for the exposures a company actually has: vehicles it owns or leases, vehicles it hires or borrows, and employees’ cars used on company business. It also extends coverage to anyone using a covered auto with the company’s permission. Insuring a business vehicle on a personal policy to save premium can leave gaps that surface only after a claim, so the policy should match who owns the vehicle and how it is used.
A business auto policy can cover nearly any road-licensed unit a business owns or uses:
- Private passenger cars, SUVs and pickups
- Trailers of all sizes
- Medium and heavy trucks, up to semi tractors and trailers
- Specialty units such as limousines and tow trucks
What does commercial auto insurance cover in Michigan?
A Michigan business auto policy provides the state-mandated no-fault coverages, personal injury protection (PIP) and property protection insurance (PPI), plus liability for injuries or property damage others suffer in an accident caused by you or your employee. It can also add uninsured and underinsured motorists, comprehensive and collision for your own vehicles, and smaller coverages such as towing, rental reimbursement and hired car physical damage.
| Coverage | What it actually touches | Where it stops |
|---|---|---|
| Liability | Injury and property damage you or your drivers cause to others | Your selected limit, usually a combined single limit |
| Personal injury protection (PIP) | Medical expenses, work loss, replacement services, funeral expenses and survivors’ benefits for injured insureds | Employees hurt on the job are generally a workers’ compensation claim first |
| Property protection (PPI) | Damage your vehicle causes in Michigan to buildings, bridges, signs, fences, guardrails and legally parked cars | $1,000,000 |
| Uninsured / underinsured motorists | Injuries caused by a driver with no or too little insurance | The limit you select |
| Comprehensive and collision | Damage to your own vehicles | Your deductible and the vehicles you schedule |
| Towing, rental, hired car physical damage | Smaller costs that follow a covered loss | The sublimits shown on the policy |
What do commercial auto coverage symbols 1, 7, 8 and 9 mean?
Coverage symbols on the declarations page decide which vehicles each coverage applies to. Symbol 1 means any auto: liability applies automatically to every vehicle the company owns, hires or uses during the policy period, including one you bought and forgot to report. Symbols 7, 8 and 9 cover specifically described autos, hired autos and non-owned autos. They provide nearly the same protection, but a newly acquired vehicle must be reported to us to be covered.
Who is an insured under the liability section of a business auto policy:
- The named insured shown on the declarations page, for any covered auto.
- Anyone using a covered auto with permission, including autos your company owns, hires or borrows, subject to policy exceptions.
- Anyone liable for the conduct of an insured, but only to the extent of that liability (vicarious liability).
Symbols are easy to overlook and hard to fix after a loss. We review them with you at every renewal.
What is a combined single limit on a commercial auto policy?
A combined single limit is one liability limit that applies to bodily injury and property damage together, per accident. Personal auto policies usually split liability into separate per-person injury, per-accident injury and property damage limits. With a combined single limit, the whole amount is available to whichever type of claim is larger. If an accident causes heavy property damage and no injuries, the full limit can go toward the property damage.
Commercial auto liability is most often written on a combined single limit. Businesses with larger fleets, heavier vehicles or significant assets usually pair it with a commercial umbrella.
Does commercial auto insurance cover employees injured in a company vehicle?
An employee injured while driving or riding in a vehicle during the course of employment is generally covered first by workers’ compensation, not the auto policy’s no-fault benefits. Workers’ compensation pays medical care and wage loss for job-related injuries, including those involving an automobile. That is why commercial auto and workers’ compensation should be reviewed together, so drivers, vehicles and job duties line up across both policies.
- Workers’ Compensation — How Michigan workers’ comp covers job-related injuries
Related: Workers’ Compensation · Commercial Umbrella · General Liability · Garage & Auto Services · Michigan Business Insurance
This page is educational and does not alter any policy. Coverage is determined by the actual policy forms, endorsements and declarations issued by the insurer.