Vehicles you hire for business can be covered by general liability.
Many business owners know they need general liability protection, in case someone sues the business for an injury, but general liability policies are complex, and many people don't understand the coverages and exclusions. Some forms of auto insurance come with a general liability policy, but others cannot.
Hired Auto
General liability policies commonly contain coverage for hired autos. This extends the general liability limit to any vehicle that your business hires for business use but does not own. For example, your business may hire a taxi or limousine service to transport your team to a corporate event, or you may hire a courier service to transport documents or inventory on your behalf. If these vehicles crash and cause damage while serving you, hired auto coverage protects your business from financial liability.
Non-owned Auto
General liability policies frequently cover autos not owned by the business as well. This endorsement extends the general liability policy limit to rental vehicles or employees' personal vehicles that are used for business purposes. Hired and non-owned auto coverages are frequently sold together with general liability, though they don't have to be. Neither coverage applies to vehicles that your business owns, so you need a different type of insurance for your company fleet of cars.
Commercial Auto Insurance
If your business owns one or more vehicles, the only way to protect them is to purchase a commercial auto policy, either by adding it to your general liability policy or purchasing a separate one. Personal auto policies won't cover this risk because they typically exclude business use of the vehicles, and most personal auto insurers will not write coverage for vehicles owned by a business. Business policies can offer only liability protection, or they can include comprehensive and collision coverage that protect the vehicles from damage.
Personal Auto Policy
A complete insurance package includes personal auto policies with company car usage endorsements for you and your employees. Even with hired, non-owned and commercial auto coverage, only the business has liability protection in the event it is sued. Anyone driving the vehicles in question can face personal liability that these types of insurance won't cover. If an individual driver is sued because of negligence while driving a vehicle for business purposes, his personal auto policy pays the defense costs and judgments involved. The business's auto insurance only covers the business itself.
