Why Using Your Work Truck Without the Right Policy Could Cost You Big 

While your personal auto insurance covers you for everyday driving, it usually does not apply when you use your truck or van for business. Many business owners and contractors in California may expect their personal policies to cover accidents or claims that occur during work, but these situations are typically excluded. This gap can leave you responsible for repairs, legal fees or lawsuits if something goes wrong on the job.

Understanding the Risks of Uninsured Business Vehicles

Operating a work truck without proper commercial auto insurance can expose your business to serious financial and legal trouble. Here’s what’s at stake:

• Personal auto policies may deny claims for accidents that occur while the vehicle is being used for business purposes.
• You could be held personally liable for injuries, property damage or lawsuits resulting from an accident.
• Out-of-pocket costs for repairs, medical bills and legal fees can be devastating for small businesses.
• Commercial coverage is typically required by California law, meaning noncompliance could lead to fines and other penalties.

What Does Commercial Auto Insurance Cover?

Standard commercial auto insurance coverages may include:

• Liability coverage for bodily injury and property damage
• Physical damage coverage for your work truck or fleet
• Medical payments (MedPay) coverage for you and your passengers
• Uninsured/underinsured motorist coverage for accidents caused by drivers who have little or no insurance
• Hired and non-owned vehicle coverage for vehicles you rent or borrow for business

Who Needs to Get This Policy?

Business owners who use vehicles for work, such as contractors, landscapers, delivery drivers and tradespeople, are generally required to have commercial auto insurance. Even occasional business use can create coverage gaps in a personal policy. If your vehicle is used to transport tools, equipment or employees or if you make deliveries or travel to job sites, this policy is likely necessary.

How Our Team Can Help

At Calle's Insurance, we work closely with local business owners to help them find commercial auto insurance solutions tailored to their needs. Contact us today to discuss your insurance options and get a free customized quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.