Commercial Auto — Frequently Asked Questions

Your personal auto policy may not cover accidents that occur during business use, and even if it does, it will not protect the firm from vicarious liability claims. Commercial auto insurance with hired and non-owned auto coverage fills this gap by covering the firm's liability when employees, including you, use personal vehicles for business purposes such as driving to court, client meetings, or depositions. Without this coverage, a serious accident during a business trip could expose the firm to uninsured liability.

Hired auto coverage protects the firm when employees drive rental cars or other vehicles hired for business purposes. Non-owned auto coverage protects the firm when employees drive their personal vehicles for business tasks. Both coverages address the firm's vicarious liability for accidents that occur during business use of vehicles the firm does not own. This coverage does not protect the employee's personal vehicle or provide them with liability coverage; it specifically protects the firm as an entity from claims arising from business driving.

Yes, provided you carry hired and non-owned auto coverage. When an attorney or paralegal drives to a courthouse, deposition, or client meeting, they are operating a vehicle for business purposes. If they cause an accident during that trip, the firm can be held vicariously liable. Your hired and non-owned auto coverage responds to these claims on behalf of the firm. The employee's personal auto policy remains their primary coverage for damage to their own vehicle and their personal liability.

Most law firms should carry at least $1,000,000 in combined single limit liability coverage per accident. This limit applies to both bodily injury and property damage caused to others. Firms with owned vehicles should also carry comprehensive and collision coverage with $500 to $1,000 deductibles. Uninsured and underinsured motorist coverage, required in many states, should mirror your liability limit. Firms with significant driving exposure should consider stacking a commercial umbrella policy over the auto coverage for additional protection.

Personal auto policies vary, but most include limited coverage for incidental business use such as driving to the office or an occasional meeting. However, regular business driving such as daily court appearances, client visits, or transporting case materials may exceed what a personal policy considers incidental. More importantly, personal auto insurance does not protect the firm from vicarious liability. Even if the employee's personal policy covers the accident, the firm itself remains exposed without its own commercial auto or hired and non-owned auto coverage.