Commercial use insurance vs business use insurance

Insurance providers offer a business use designation and a commercial use designation. If your company requires this coverage, you need to have a business use designation on your vehicle insurance policy.

Business Use Insurance 

Some companies require their drivers to carry a business use designation on their vehicle insurance policy in order to receive reimbursements. 

You can add a business use to your personal auto insurance policy for an additional premium, depending on your occupation and the use of your vehicle. This designation expands the coverage you will receive. 

Business use tips:

• The business use designation is required for reimbursements for certain companies. 
• Additional insured or interested party are not considered business use and are not required unless otherwise stated by your employer.

Commercial Use Insurance 

Commercial use insurance coverage is for vehicles used primarily for business tasks such as transporting or delivering goods and hauling heavy equipment.

Commercial use does cover business use, however it is generally more expensive and not required unless transporting or delivering goods.