Commercial Auto Insurance

Commercial auto insurance covers vehicles used for business purposes, whether they are company-owned, leased, or occasionally employee-owned vehicles used for work.

While similar to personal auto insurance, commercial auto policies are designed to handle:

• Higher liability exposure
• Multiple drivers
• Increased mileage
• Industry-specific risks

A properly structured commercial auto insurance policy helps protect your business from losses that could disrupt cash flow, operations, or long-term stability.

Commercial auto insurance may cover a wide range of business vehicles, including:

• Company cars
• Cargo vans
• Pickup trucks
• SUVs
• Delivery vehicles
• Limousines
• Taxis
• Buses

Coverage can often extend to personally owned vehicles used for business, depending on how your policy is written.

Businesses that operate large trucks or heavy equipment may require commercial truck insurance instead of a standard commercial auto policy.

Insurance carriers evaluate commercial auto risk based on several factors, including:

• How vehicles are used
• Annual mileage
• Driver age and experience
• Number of drivers
• Safety programs and driving history

These factors help determine coverage needs, eligibility, and pricing for Missouri and Arkansas businesses.

According to research from the U.S. Department of Transportation involving commercial motor vehicles (CMVs):

• Drivers were engaged in non-driving tasks in 71% of CMV crashes

• 46% of near-crashes and 50% of safety-critical events involved distracted driving

These findings highlight the importance of strong liability limits, driver screening, and ongoing risk management for businesses operating vehicles in Missouri and Arkansas.

Commercial auto insurance policies typically combine required and optional coverages, including:

Bodily Injury Liability
Covers injuries or death caused to others by you or your employees, including medical expenses, legal defense, and settlements.

Property Damage Liability
Pays for damage to another person’s vehicle or property caused by a covered accident.

Collision Coverage
Helps repair or replace your business vehicles if they’re damaged in an accident caused by you or your drivers.

Comprehensive Coverage
Also known as “other than collision,” this covers losses from theft, vandalism, fire, hail, and weather-related damage.

Uninsured & Underinsured Motorist Coverage
Provides protection if your driver is hit by someone without adequate insurance.

Medical Payments Coverage
Pays medical or funeral expenses for drivers and passengers, regardless of fault.

Depending on your business operations and insurance carrier, optional coverages may include:

• Hired and non-owned auto coverage
• Rental replacement vehicles
• Towing and roadside assistance
• Coverage for loading and unloading cargo

Optional coverages help tailor your policy to how your business actually uses vehicles.

Many business owners in Missouri and Arkansas assume personal auto insurance covers business use—but that’s often not true.

If an employee uses their personal vehicle for errands, deliveries, or client transportation, a personal auto policy may deny the claim without proper commercial coverage.

Even occasional business use can create serious coverage gaps. Commercial auto or hired and non-owned auto coverage helps protect your business from uncovered liability claims.

As an independent insurance agency, MBG Insurance works with multiple carriers to tailor coverage based on how your business actually operates.

We take time to review:

• Number of vehicles
• Vehicle usage (people, goods, equipment, or materials)
• Annual mileage
• Number of drivers and experience levels
• Driver safety and training programs

This approach allows us to:

• Identify coverage gaps
• Locate available discounts
• Ensure competitive pricing
• Match liability limits to real-world exposure

Yes. Most businesses operating vehicles in Missouri and Arkansas are required to carry commercial auto insurance that meets state minimum liability limits. Requirements vary based on vehicle type, weight, and use, especially for vehicles transporting people, goods, or hazardous materials.

Also, your Personal Auto Policy likely has exclusions for vehicles be used for business purposes.

Hired and non-owned auto coverage protects your business if an employee causes an accident while driving:

• A personal vehicle for work, or

• A rented or leased vehicle

This coverage is especially important for businesses that do not own vehicles but still have employees driving for business purposes.

Running errands for a business could be considered business use.  For most business' the coverage is inexpensive and offers great protection.

Yes. Commercial auto policies are designed to cover multiple drivers, including employees and sometimes volunteers, depending on how the policy is written. Driver age, experience, and driving records may affect eligibility and pricing.

Not always. Independent contractors typically need their own commercial auto insurance. However, your business could still be held liable depending on the situation. Many Missouri and Arkansas businesses use contract requirements and certificates of insurance to manage this risk.

The right liability limits depend on your industry, vehicle use, and risk exposure. State minimums are often not enough. Many businesses choose higher limits and add a commercial umbrella policy to protect against large lawsuits and serious injury claims.

Common pricing factors include:

• Type and number of vehicles
• Annual mileage
• Driver experience and driving records
• Industry and vehicle use
• Claims history
• Safety programs and driver training

Strong risk management can help lower long-term insurance costs.

In many cases, yes. Commercial auto insurance premiums are often considered a business expense, but businesses should consult their accountant or tax professional for specific tax guidance.

If a vehicle is being used for business purposes, a personal auto policy may deny the claim, leaving your business responsible for damages, injuries, and legal costs. This is one of the most common reasons businesses move to commercial auto insurance.

Some policies can cover trailers and attached equipment, but coverage varies by carrier and policy. It’s important to review trailer ownership, usage, and value to ensure proper protection.

Commercial auto insurance should be reviewed at least annually and anytime your business:

• Adds or replaces vehicles
• Hires new drivers
• Expands into new territories
• Changes operations or services

Regular reviews help prevent coverage gaps and unexpected claim denials.