Commercial Auto vs. Personal Auto: When You Have to Switch

The denial scenario

Personal auto policies include a 'business use' exclusion. If a delivery driver, a service tech, or a salesperson uses a personal vehicle for work and is in an at-fault accident, the personal carrier can deny the liability claim. That denial leaves the business as the deep pocket and the employee uninsured.

When you must switch

• The vehicle is titled to the business
• The vehicle is used to transport tools, equipment, or goods for hire
• The vehicle carries the business name or DOT number
• The driver hauls cargo, delivers product, or visits client sites for revenue
• You have 1+ employees regularly driving for the business

What hired/non-owned does

Hired and Non-Owned Auto (HNOA) sits on a GL or commercial auto policy and protects the business when employees drive personal or rented vehicles on business. It does not protect the employee's vehicle — that's still on their personal auto. HNOA is cheap, often $150–$400/year, and we add it to most service-business programs by default.