The combat is “definitely not over,” say policyholders’ counsel California Supreme Court docket asked to weigh in
So significantly high court docket conclusions favor insurers 9 to 1
(Reuters) – Each and every federal appellate court to take into account the question so considerably has dominated that business all-threat home coverage procedures do not protect income dropped thanks to the Covid-19 pandemic, but policyholders’ legal professionals say the struggle is just having commenced on the battlegrounds that make a difference the most: the state supreme courts.
“It’s surely not over. That’s the takeaway for 2023,” claimed Michael Levine of Hunton Andrews Kurth, who is representing policyholders in various Covid-19 company interruption disputes nationwide.
“Most state significant courts still have not spoken on the issue, but the range will boost in 2023,” Levine explained, with new situations pending in the top courts of New York, Louisiana, Nevada, and Alaska – and, as of Wednesday, California.
Specifically, the 9th U.S. Circuit Courtroom of Appeals questioned the California Supreme Court to resolve a split among the California appellate courts as to regardless of whether the existence of the Covid-19 virus “can constitute ‘direct bodily loss or damage to property’ for needs of coverage under a professional property insurance policy coverage.”
The 9th Circuit seemed to rule out that probability in a 2021 decision, but not all state courts agreed with it. Some appellate divisions dominated in 2022 that plaintiffs have to have a likelihood to clearly show that the virus does, in truth, lead to a “physical alteration” by adhering to surfaces.
The 9th Circuit sent the issue to the California Supreme Court docket on Dec. 28, two weeks after the panel listened to argument in event-enterprise One more Planet Entertainment’s attractiveness of a ruling for its insurer, Vigilant Insurance policy. (Neither the celebration company’s lawyers at Pasich nor Vigilant’s authorized team at O’Melveny & Myers and Clyde & Co responded to requests for remark on Friday.)
“If the California Supreme Courtroom does choose up this query, which is heading to be the scenario that everybody’s observing – together with the New York situation,” explained David Weiss, a spouse in Reed Smith’s Litigation Insurance policy Restoration Team. The business has represented firms in Covid-protection disputes as effectively as United Policyholders, an advocacy team that often files amicus briefs on the matter and options to do so in the New York circumstance, Consolidated Restaurant Business (CRO) v. Westport Insurance coverage.
CRO, represented by lawyers at Cohen Ziffer Frenchman & McKenna, suggests the New York trial and appellate courts improperly grafted a prerequisite of “tangible alteration” onto the definition of property hurt, which would eliminate coverage for pollutants and destructive fumes.
Westport disagreed. Its legal professionals at O’Melveny & Myers and Clyde & Co argued that the situation provides “no novel challenges, nor troubles of good public significance.” But New York’s prime courtroom, the Court docket of Appeals, agreed to listen to CRO’s attractiveness on Nov. 30. (Attorneys for the two sides did not reply to requests for comment.)
Whilst the New York and California selections “could be really influential,” Weiss reported, “at the end of the working day the courts in other states are likely to use their possess rules to determine these difficulties.”
Both he and Levine foresee litigation continuing into 2024 or further than.
Laura Foggan, chair of Crowell & Moring’s Insurance policies/Reinsurance Team, is not so absolutely sure.
Even though “there may possibly be a point out or two that just stands as an aberration in opposition to the rest of the state,” she stated, “it doesn’t choose (a ruling) by just about every solitary condition supreme courtroom, when the prevailing perspective throughout the nation is constant.” Foggan has represented insurers and business trade associations in several Covid-coverage conditions.
In accordance to the University of Pennsylvania’s Covid Coverage Litigation Tracker, nine of the 10 higher court decisions as of Dec. 30 have been in favor of the insurance policies organizations. (The exception is Vermont.)
Three other condition supreme courts have heard argument but have not still ruled, in accordance to the litigation tracker.
Professional insurance coverage is a requirement for virtually all compact enterprises. Basic liability insurance, at a least, can guard small business owners against personal injury claims from shoppers or even passers-by. But lots of firms will need extra coverages, this kind of as industrial property, skilled liability, business automobile, and more. A small business owner’s coverage (BOP), which brings together professional residence and general liability, is a person of the most preferred policy packages, and can be personalized with extra coverage forms to handle your distinct small business requirements.
We meticulously reviewed company owner’s guidelines throughout several corporations moreover other kinds of protection suitable for various industries, this sort of as food organizations, to establish our “best of” lists for industrial insurance. Below, we depth the knowledge we sourced, criteria we used, and methodology we applied.
Which Content articles Use Our Methodology
We have quite a few posts about the most effective commercial insurance policies providers for specific products or to fulfill the wants of individual readers. This methodology describes the process employed for compiling our checklist of Greatest Smaller Organization Insurance policies Companies. Other posts that record the greatest business coverage businesses for specified industries use this info furthermore added information which follows underneath. (Examples are: Most effective Independent Contractor Insurance plan, Greatest Meals Truck Insurance coverage, Ideal Cafe Insurance coverage, and Best Food stuff Liability Insurance plan.)
The range and get of companies are based on facts evaluation furthermore extra item-distinct standards and subjective insights from our editors and market authorities.
Literature Evaluate
To determine the firms bundled in this review, as very well as our criteria for evaluating them, our crew considered the next factors:
Marketplace share: Organization and current market perception databases, these as Statista, Plunkett, and Gale, furnished graphics and lists of the greatest firms providing business insurance plan for organization homeowners by yearly greenback amount of rates composed.
Google look for final results: We regarded which companies buyers ended up most very likely to be confronted with when searching for important product or service conditions, such as “business owner’s plan.”
Regular research volume: We regarded as how quite a few situations a firm was searched in the context of a individual product or service kind (e.g., “Next company insurance”) to slim down which firms to consist of in our examination.
Competitor evaluation: We reviewed posts posted by our opponents to verify we weren’t overlooking suitable businesses to contain.
Company merchandise pages and urge for food guides: We reviewed product or service pages on business web sites and hunger guides made for professional coverage agents to evaluate and itemize crucial solution options.
Data Collection
Facts was gathered from both of those third-social gathering rating companies and the organizations immediately as a result of company internet sites, published merchandise webpages and brochures, customer support reps, and media contacts. Our sources also include: AM Best, The Countrywide Affiliation of Insurance policy Commissioners (NAIC), and J.D. Energy
As soon as selection was done, the information was verified to assure integrity and accuracy. Our crew cross-referenced citations, back links, and critical documents remaining on each and every knowledge level from major resources.
Scores Methodology
We calculated star ratings that mirrored our evaluation of the good quality of each and every company’s little organization insurance policy programs. We concentrated on a well-known bundle, referred to as the small business owner’s plan (BOP), which includes industrial property, normal legal responsibility, and frequently, enterprise money protection. The variables that motivated our star rankings include things like:
Expenses and service fees (25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}): Once-a-year premium amounts for a enterprise owner’s coverage, availability of bargains, every month payment alternative.
Accessibility (10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}):Condition availability of a BOP and once-a-year revenue restrictions.
Quotation/software experience (25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}): Ability to get a quotation and immediately acquire a coverage on the internet, from the firm’s web site, without the support of a are living agent. (All providers reviewed give the solution to buy with agent help.)
Prepare good quality/purchaser pleasure (15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}): A weighted typical of every company’s grievance index for its business lines was calculated about 3 yrs, amongst 2019 and 2021, dependent on company complaints on file with the Nationwide Association of Insurance policy Commissioners (NAIC). We also regarded corporation rankings in the J.D. Electricity 2022 U.S. Little Professional Insurance coverage Research.
Coverage (15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}):For BOP’s throughout organizations, we as opposed utmost claim limitations available (the amount an insurance company will shell out for just about every unique declare designed throughout the plan time period), optimum combination restrictions offered (the most sum an insurer will pay for all promises designed during the policy interval), and the lowest deductibles offered.
Economical stability (10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}): We gathered just about every company’s monetary toughness ranking from AM Very best, a credit score company that assesses an insurance plan company’s creditworthiness, or likelihood the firm will default on its obligations.
Other Knowledge Selection
We collected more info to notify marketplace-distinct business owner’s guidelines and protection sorts. This information incorporates:
Experienced liability coverage: availability and greatest assert boundaries
Normal legal responsibility insurance policy (standalone coverage): availability and greatest assert limitations
Business personal assets insurance policy: availability and greatest declare boundaries
Shanker’s qualifications in Used Statistics has equipped him with both equally the tools and sensible framework necessary to acquire, refine, and execute analysis methodologies.
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Hannah Kang
Exploration Manager, Efficiency Marketing and advertising
Hannah has been conducting exploration for around a decade, with a recent concentration on furnishing details-driven tips from synthesizing quantitative information with qualitative details on products and services and goods across finance, wellbeing, and life style.
Prior to signing up for the Efficiency Promoting team as a Study Affiliate, Hannah performed investigate for Fortune 500 providers and multinational biotech organizations like Pfizer, Johnson & Johnson, and Takeda. Her encounter leading arduous reports for Fda reviews formed her common of investigate integrity which guides her do the job at General performance Advertising and marketing.
SAN FRANCISCO — Saturday’s epic rainstorm had citizens throughout the Bay Place who aren’t utilized to dealing with flooding asking critical concerns about irrespective of whether their coverage would address the damage.
Quite a few in San Francisco are struggling with a impolite awakening about who will pay for all of the repairs.
While a great deal of the Town is designed on hills, Saturday’s rainstorm wreaked havoc on the properties and firms at the base of all those hills. Videos posted on line display individuals paddling surfboards and makeshift rafts in the Mission District close to Folsom and 14th Streets.
“In 45 minutes, I would say, the water was up to 12 inches on 14th Street here,” reported Zeki Abed, co-operator of Mission District bike storage garage Motohaus. At the height of the storm, drinking water forced its way into the business.
On Monday, staff were fast paced setting up a moveable dam-like composition out entrance to keep it from taking place yet again.
Abed was fortunate. The outdated setting up from 1906 is produced of concrete and redwood, so there wasn’t a lot in the way of structural injury. But he does have a popular problem.
“I really don’t assume flood insurance policy is a little something we have,” he explained. “But it’s something that individuals need to have to get, naturally. There’s heading to be additional routinely happening incidents, so we just will need to be aware, I think.”
As people today dry out from the deluge, many are finding the really hard fact about their insurance policy protection: most standard homeowner’s guidelines do not include things like flood security.
“The homeowner’s policy, most probably, is not going to deal with it,” stated Edder Barcenas, an independent Farmers Insurance policies Agent in San Leandro. “Simply because that is because of to a organic catastrophe, all-natural causes. So that’s when the flood policy kicks in.”
Barcenas reported people today have to have a independent flood rider on their coverage to deal with drinking water problems from pure forces — a so-named, “act of God.” He reported in locations that ordinarily have reduced chance, the top quality can be pretty sensible, as low as $1,000 per calendar year.
But without it, most residence homeowners are on their have to go over repairs.
“I’d say about 80 p.c of individuals will not know specifically what they have in their plan,” mentioned Barcenas
Outdoors of Rintaro Restaurant on 14th Avenue, owner Sylvan Mishima Brackett was also making a barrier. Inside they ended up with several ft of drinking water in their courtyard and eating locations. But contrary to a whole lot of new flood victims, he also has a glimmer of hope.
“We do not have flood coverage, but we do have insurance plan for storm drains and sewage backup,” said Mishima Brackett. “So the query is irrespective of whether or not the insurance organization is going to say this is because the storm drains couldn’t manage it or if this is a flood. I am hoping they’re going to say it truly is mainly because the drains aren’t large ample.”
All people suggests the storm drains are the difficulty in the spot. Some feel they’re too tiny, many others say they clog far too easily. Brackett claimed they had an additional flooding event in 2014, but right after a nine-thirty day period struggle, the City of San Francisco inevitably despatched him a significant verify, which he reported was accepting obligation for the efficiency of the drains.
But on Monday, with another storm on the horizon, the piles of leaves and particles just ready to clog them again was not supplying anyone on 14th Road significantly optimism.
John Ramos
John Ramos unintentionally launched a lifelong vocation in journalism when he commenced drawing editorial cartoons and producing good-alecky satire parts for the Bakersfield Substantial University newspaper.
Getting suited coverage at the appropriate stage of protection is an critical aspect of every small business. Becoming underinsured or acquiring the erroneous small business insurance coverage broker can have devastating penalties.
The eyesight of a high quality small business coverage broker is to carry and restore rely on and religion in the approach empower shoppers to interact in the decision-earning system and know their advisor of alternative is doing work in their ideal fascination.
Read through ALSO: Rating Arizona: Major 10 insurance plan brokers for 2022
It is not frequent for enterprises to routinely put their attorney and CPA out to bid, so why is it some corporations rely on this method when choosing their insurance broker?There is substantial worth to the enterprise when the right broker is in location.
Enterprise insurance policy is complicated. It involves compliance and sector expertise. It must also adapt as the business enterprise evolves. Firms count on small business insurance policies to be there in the most dire of predicaments.
In get to restore believe in and faith in the system, hand choose your advisor relatively than enabling the most affordable bid insurance policies provider to determine your broker.
Good reasons to operate with an impartial broker
Andrew Martinez is an Insurance policies Marketing consultant with The Arizona Group.
Doing the job with an impartial broker offer you with obtain to a large selection of coverage businesses to meet up with the needs of your organization. An impartial broker will tailor and negotiate protection on behalf of the client.
They are gurus in analyzing possibility and remain on best of latest market place situations. An impartial broker will often be there for you.
Good reasons to pick out a broker vs. the bid system
This is a experienced marriage very similar to what you have with your CPA and lawyer. An insurance policy broker is not just one more seller. He or she will also be a valued organization advisor.
Hold in head that a capable broker and his or her group will nutritional supplement your own administrative group. By undertaking so you will prevent hurrying in the ultimate days to challenge binders, certificates, vehicle ID cards, and payment, to title a several organization products.
You will experience as even though your organization is currently being taken treatment of for the fiscal financial investment you are producing. Instead than only sensation relieved that this exhausting system is around you will really feel self-assured about your determination and who you have decided on to operate with.
Recommendations when deciding upon a broker
Just take command and commence the approach about five to 6 months prior to renewal of your coverage. Satisfy with brokers you would look at functioning with on a working day-to-day basis individuals with whom you can forge a partnership.
Through the job interview process question them about their experience, amount of client involvement, providers, abilities, the insurance coverage organizations they symbolize, and market-similar shoppers they presently serve. Slender the field to not far more than two brokers (including your incumbent).
At this issue you will have just one to two certified brokers from which to decide on. Allow each individual broker to assemble their proposal for your insurance method and include things like new concepts and ideas. Meet up with the broker’s service staff. These people today are essential to the variety procedure and will cope with most of the working day-to-day processes.
Last but not least, discuss with your crew which broker you favor. Do not allow for the low bid to establish who you find. Decide on the broker you sense will ideal complement your group.
Writer: Andrew Martinez is an Insurance Advisor with The Arizona Group. For extra data simply call Andrew at (480) 633-6679 or take a look at arizonagroup.com.
And this is not the entire list. Not even the Canadian Chamber of Commerce, which makes a point of stressing the value of digitization, mentions coverage – employing funds movement is king.
For tiny company homeowners, the dilemma is magnified simply because, ordinarily, one or two men and women are accountable for dealing with every single factor of the agency, from running workforce to building payroll.
And if admin perform is a chore, why make it far more intricate with paperwork?
Jeff Shaw (pictured) CEO of insurtech agency Cerity, would heartily concur with you.
“The planet is relocating to digital, and electronic coverage is no unique,” he advised Insurance plan Enterprise America soon following the announcement of a partnership between his firm – a digital provider of workers’ payment insurance coverage insurance policies – and fellow insurtech organization, Thimble.
As considerably as Shaw is anxious, there is no cause why online insurance plan need to not be as easy as purchasing on the web, and he is fast to stage out that there is a historical precedent.
“I try to remember when online car insurance policy 1st arrived out, every person seemed at it and claimed ‘that’s never ever likely to occur – you have to have an agent’, but now most people get it on-line. It is a minor various with enterprise insurance plan for the reason that there’s more complexity, but I incredibly a lot assume it’s likely to materialize. It is just a make a difference of time and consciousness.”
The sector alone – which is worthy of $1.4 trillion in the US by itself – has also grown by pretty much 13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} involving 2020-2021. Pertaining to experienced legal responsibility insurance plan, the market is established to arrive at $55,100 million by 2028, up from $43,480 million very last calendar year.
The crucial, according to Shaw, is to arrive at a larger number of modest business owners and convince them of the pros of heading on line for their insurance plan wants, as opposed to likely to an agent.
“The most significant problem is brand name recognition and for consumers to know that going on line is an choice. Numerous corporations imagine that the only solution is agent-positioned.
“But there’s almost nothing you do with an agent that can’t be completed on-line. Workers’ payment coverage is advanced, but we have taken the techniques to make it less so,” he discussed.
That could suggest studying about safeguarding their firm and their personnel, acquiring an reasonably priced estimate in minutes, or downloading their own certificates of insurance plan. The target is merely to supply a a person-prevent store for them.
Irrespective of the challenges experiencing the US overall economy – and the prospect of a recession – Shaw continues to be optimistic going into 2023.
“The swift expansion of electronic (will keep on),” he explained. “We’re likely to see individuals turn into additional cozy purchasing on line for their small business insurance coverage. I don’t imagine economic downturn is heading to harm, nevertheless. I’m normally bullish. You see a lot of businesses go out of small business, but you also see a great deal of compact firms. If individuals lose their occupation and commence their own business enterprise, they are going to have to have workers’ extensive coverage – and they are heading to go on the internet.”
If you need coverage for your business fleet, our picks for the best commercial auto insurance companies give you several options. The companies on this list offer a mix of policies: liability, medical payments, comprehensive, collision and uninsured/underinsured motorist coverage.
As with private passenger insurance, you can lower your monthly commercial auto insurance premium by bundling policies with business insurance. You can also reduce your premiums with business experience, having a Commercial Driver’s License (CDL) and insuring your personal vehicle with the same company.
We put together a comprehensive list of what each commercial car insurance company has to offer to help you decide which one is the best pick for you.
Our top picks for the best commercial auto insurance companies
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Best commercial auto insurance companies reviews
Why we chose it: Progressive is the largest commercial auto insurer in the country, offering a wide range of services. Coverage types include liability, physical damage, medical payments, uninsured motorist, hired auto, any auto, and non-owned coverage. Progressive can also cover many vehicle types, including business automobiles, trucks and trailers.
Largest insurer of commercial vehicles
Many potential discounts
Extensive range of coverage options
Available in all 50 states
Doesn’t sell policies online
Must work with an agent
HIGHLIGHTS
A.M. BEST RATING
A+
JD POWER RATING
Below average (861/1,000)
NAIC Complaint Index
Below median (0.67)
Progressive’s commercial auto insurance policies are highly customizable. The company even lets you adapt your policy to seasonal changes, which is useful if you need to insure more or fewer vehicles during certain times of the year.
Progressive offers numerous discounts on its commercial auto insurance, such as discounts for CDLs, bundling and paying by EFT. You can also claim a discount if you also insure your personal vehicle with Progressive.
According to Progressive’s website, its average monthly premium for commercial auto insurance is $205 for business auto. For contractors, the average cost is $196 per month. Keep in mind, however, that prices with Progressive may vary depending on whether you buy insurance online or over the phone with an agent.
Progressive has a strong AM Best rating of A+ and its NAIC Complaint Index for commercial auto insurance is 0.67, below the national median. However, its latest J.D. Power rating for auto claims satisfaction is 861 out of 1,000, well below the industry average.
Why we chose it: Nationwide offers many coverage options, like liability coverage, comprehensive and collision, and uninsured and underinsured motorists. It also lets you expand your coverage through endorsements such as roadside assistance, new vehicle replacement, auto loan or lease coverage and rental reimbursement.
Strong reputation for customer satisfaction and financial strength
Vantage 360 services includes a 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} discount
Available in all 50 states
Not all vehicle types are covered
Must work with an agent
HIGHLIGHTS
A.M. BEST RATING
A+
J.D. Power Score
Above average (854/1,000)
NAIC Complaint Index
Below median (0.92)
Vantage 360 is Nationwide’s telematics service for small businesses. It allows you to manage a fleet of vehicles and monitor drivers’ routes and activity. Individual drivers can also earn points for good diving behavior that they can later redeem for gift cards.
Nationwide claims that drivers who use telematics apps have 47{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} fewer claims. And business policyholders who opt into Vantage 360 may be eligible for a 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} discount on select coverages — provided they take a recorded trip within 45 days of enrollment. Coverage is available for various vehicles, including cars, trucks and vans.
With Nationwide, you can pair your commercial auto coverage with business owners’ insurance, general liability, workers’ compensation and umbrella insurance. While the company has an online quote tool, we found that it won’t always provide a quote unless you call its sales team. Similarly, you must call an agent if you want to buy a policy.
Nationwide includes a number of options to customize your coverage. These options, which Nationwide calls endorsements, include expanded towing and labor, rental reimbursement and auto loan or lease gap coverage.
Nationwide has an A+ rating from AM Best. And while it fell below the industry average in J.D. Power’s latest Auto Claims Satisfaction Study, it ranked third among insurers in the firm’s U.S. Small Commercial Insurance Study. Nationwide General Insurance Company has a 0.92 NAIC complaint index for its commercial auto line, just below the industry median.
Why we chose it: The Hartford’s telematics program, FleetAhead, doesn’t just help small business owners qualify for discounts, it’s also a tool for developing drivers. The software creates a baseline for drivers based on their behavior on the road and can recommend coaching strategies to help them improve their performance. Drivers also get feedback while they drive, which helps reduce risks in real time.
Broad range of coverage options
Coverage for both large and small businesses
Available in all 50 states and D.C.
Discounts for hybrid and electric vehicles
Online quotes not available
Few options for single vehicles
Must call to purchase a policy
HIGHLIGHTS
A.M. BEST RATING
A+
J.D. Power Score
Below average (819/1000)
NAIC Complaint Index
N/A
The Hartford is one of the most well-known and trusted names in the insurance industry. The company has been around for more than 200 years and provides commercial auto insurance primarily for business fleets. It offers a wide range of services, including downtime loss, rental reimbursement and towing coverage. Its network of over 1,000 auto repair shops also makes it easier to take care of repairs no matter where you are.
Coverage options from The Hartford include liability, comprehensive and collision, uninsured/underinsured motorist, medical payments and non-owner insurance. The company also offers some unique services and discounts. For instance, it includes gap coverage for leased and loaned vehicles and coverage of electronic devices. Plus, you can get an additional 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of the cost of total loss vehicles you replace with hybrid, electric or natural gas ones.
The Hartford has an A+ rating for A.M. Best but is ranked below the industry average in the latest J.D. Power Auto Claims Satisfaction Study. You must also call an agent to get a quote or purchase a policy.
Why we chose it: Farmers is the top choice for single-vehicle policies. With its specialized coverage for independent contractors and a wide range of coverage options, Farmers is ideal for independent contractors. Coverage includes using personal vehicles for business use if you don’t have a dedicated business vehicle.
Specialized coverage for contractors
Coverage in all 50 states
Broad range of coverage options
Few discounts
Online quotes not available
Must work with an agent
HIGHLIGHTS
A.M. BEST RATING
A
J.D. Power Score
Below average (830/1,000)
NAIC Complaint Index
Below median (0.24)
Standard commercial auto insurance coverage options through Farmers include non-owned auto, uninsured/underinsured, liability and comprehensive.
Farmers also offers insurance options you may not find elsewhere, such as coverage for food trucks. This product lets you customize a policy to your needs, combining auto insurance with other coverage options for restaurant owners, including equipment breakdown, food contamination shutdown and spoilage insurance.
Farmers doesn’t provide quotes online, and you must work with a local agent to buy a policy. Its A rating from A.M. Best is slightly lower than competitors’ ratings, and discounts from Farmers are somewhat limited. Still, its specialized coverage for single vehicles makes it worth considering for certain businesses.
Why we chose it: Auto-Owners is our top pick for those who don’t want to overpay on commercial auto insurance. Possible discounts through Auto-Owners include multi-policy, paid-in-full, fleet monitoring, group coverage and seasonal vehicle use. The company also has excellent financial strength ratings, and customer complaints are few and far between.
Many discounts available
Additional expense coverage
Coverage for motor carriers
Online quotes not available
Must work with a local agent
HIGHLIGHTS
A.M. BEST RATING
A++
J.D. Power Score
Above average (847/1000)
NAIC Complaint Index
Below median (0.64)
Auto-Owners offers all the standard policy options like comprehensive and collision, liability and medical payments. It also has coverage for newly acquired autos and road trouble service. If you happen to incur additional expenses when you have car trouble, such as car rental or hotel booking costs, it will help cover those too.
Auto-Owners is one of a few insurers to receive an A++ rating from AM Best. It also earned the top spot for independent agent satisfaction, according to a 2022 J.D. Power study. However, the company doesn’t offer online quotes, and you’ll have to work with a local agent to buy a policy.
Why we chose it: Sentry offers customizable commercial policies that work well for fleets and large businesses. Sentry primarily serves businesses in construction, manufacturing, retail, trucking and car dealerships. Its business auto insurance offering includes options for dealerships, motor carriers and motor truck cargo.
Includes coverage for non-work vehicle use
Coverage for dealerships and motor carriers
Available in every state
Online quotes not available
Must work with an agent
HIGHLIGHTS
A.M. BEST RATING
A+
J.D. Power Score
N/A
NAIC Complaint Index
Below median (0.68)
Sentry’s commercial vehicle insurance offering includes commercial auto liability, physical damage and non-trucking liability. The latter covers you if you occasionally use your work vehicle for personal use, which makes the company another great option for contractors.
Sentry offers several discounts to customers who participate in training programs. These include video coaching sessions and theft prevention and online safety courses.
While Sentry isn’t rated in the latest J.D. Power Auto Claims Satisfaction Study, it has an A+ rating from A.M. Best. However, the company doesn’t offer online quotes, so you must call the number on its website.
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Other companies we considered
Travelers
Coverage for physical damage
Covers many different vehicle types
Industry-specific coverage
Online quotes not available
Must work with an agent
Travelers has coverage for many vehicle types, including passenger vehicles, light trucks, heavy trucks and vehicle fleets. It offers liability, uninsured/underinsured motorists and physical damage coverage as well as industry-specific coverage for industries like oil & gas and the public sector.
Travelers’ commercial insurance is well suited to small and large fleets. It offers coverage in most states but doesn’t provide quotes online. You will have to work with an agent in your area to obtain a quote and purchase a policy.
Travelers has an A rating from AM Best but ranks well below the national average in J.D. Power’s most recent U.S. Auto Insurance Claims Satisfaction Study.
State Farm
Top rating for financial strength
Top rating for customer satisfaction
Coverage in all 50 states
Online quotes not available
Limited online options for commercial use
Must work with an agent
State Farm’s commercial plans can be customized to meet your needs. Policies cover vehicles you own and lease and medical fees for you and your employees.
State Farm doesn’t have an online quote tool, meaning you’ll have to work with a local agent to get a quote or purchase a policy. However, its website does have a chat and includes a tool to find an agent near you.
As for third-party ratings, State Farm received an above-average rating in J.D. Power’s 2022 U.S. Auto Claims Satisfaction Study. Nevertheless, its NAIC complaint ratio for commercial auto insurance is quite a bit higher than the industry median (2.73).
Great West Casualty Company
Strong financial strength ratings
Very few customer complaints
24/7 claims filing
Can’t request a quote without talking to an agent
Not available in Alaska, Hawaii, Massachusetts or New York
Great West Casualty, a subsidiary of Old Republic, specializes in commercial truck insurance, and it’s worth considering for any business that operates in that sector. It provides many types of coverage, including liability, owner-operators, physical damage and umbrella insurance.
Great West Casualty has been in business for over 65 years. In addition to its underwriting services, the company offers seminars and publishes videos and newsletters aimed at helping customers improve safety and meet regulatory compliance.
You can request a quote online, you’ll have to wait for an agent to reach out to you with a quote. Great West Casualty has an A+ rating with AM Best and very few NAIC complaints against its commercial auto insurance line.
Allstate
Online quotes available
Claims service available 24/7
Many vehicle types covered
Items inside the vehicle are not covered
Allstate is among the top 10 largest commercial auto insurers in the industry and has one of the highest ratings in the 2022 J.D. Power Auto Claims Satisfaction Study. It offers liability, collision and comprehensive, and uninsured/underinsured motorists coverage and rental reimbursement.
With Allstate, you can get quotes online and submit claims 24/7. It has an A+ rating from AM Best, but it has an above-average number of NAIC complaints against its commercial auto policies.
AmTrust Financial
Industry-specific coverage
Liability limits up to $1 million
Downtime loss coverage available
Online quotes not available
Must work with an agent
AmTrust is well suited to contractors, covering businesses like electrical, plumbing, roofing, HVAC, distribution, energy and appliance repair.
Coverage types include liability and physical damage coverage for light, medium and heavy vehicles. Everything from single units to large fleets can be covered, with liability limits from $300,000 to $1 million. Other benefits include downtime loss coverage — for when covered losses prevent you from operating — and diminishing deductibles.
AmTrust received an A rating from AM Best but has a higher complaint ratio against its commercial auto line than other competitors.
Federated Insurance
Industry-specific coverage
Customized policies
Variety of coverage types
No online quotes
Must work with an agent
Federated Insured provides coverage to people like contractors, car dealerships, retailers and wholesalers. It also insures industries like cabinet and woodworking, funeral services and printers. It has an extensive portfolio of services, with everything from general liability to commercial auto and commercial umbrella.
Federated Mutual Insurance Company has an A+ rating from AM Best and no complaints against its commercial auto policies logged with the NAIC for 2021.
Special coverage for truckers
File claims online or over the phone
Online quotes available
Coverage not available in all states
Acuity Insurance
Acuity Insurance provides commercial auto insurance to many types of industries, including construction, retail, trucking and wholesale. It offers liability, physical damage, uninsured/underinsured motorist and PIP coverage.
Acuity also offers several perks, such as $3,000 in coverage for electronic logging devices and special coverage for truckers.
Acuity allows customers to get quotes online and submit claims either online or over the phone. It has an A+ rating from AM Best and few NAIC complaints. However, Acuity is not licensed in all states, so check whether its services are available where you live.
Commercial auto insurance companies guide
While commercial auto insurance is similar to personal auto insurance, there are some noticeable differences. This guide covers what you need to know about commercial auto policies and how to find the best rates.
Main things to know before choosing a commercial auto insurance company
One of the most important things to know about commercial auto insurance companies is that they aren’t all the same. Some work with just a handful of types of clients or businesses, while others will take on almost any kind of client.
The same is true for coverages: coverage options and limits may vary by company. With this in mind, ask the insurer you are considering to go over what its policies cover before you sign up.
Commercial auto insurance must be tailored to your business, so not all companies will be the right fit. To get the best service and discounts, find insurers that regularly work with the kind of business you have and compare car insurance quotes from each one.
What is the average cost of commercial auto insurance companies?
The cost of commercial auto insurance can vary widely depending on factors such as your state and the type (or types) of vehicle you’re looking to insure, your personal driving record and your industry.
As Nationwide notes, there isn’t an average cost of commercial auto insurance that applies to all businesses. Ask for quotes from a few commercial auto insurance companies and compare prices and discounts to get the best deal.
What does commercial auto insurance cover?
Commercial auto insurance covers many different things, depending on the business. However, here are the most common coverage options:
Liability insurance protects you and your company against bodily injury or property damage if you are found legally responsible after an accident.
Comprehensive coverage protects you if your vehicle is damaged by something other than another vehicle, such as vandalism, theft, fire, flooding, hail or accidents involving animals.
Collision coverage protects you when you hit another vehicle or object, are hit by another vehicle or your vehicle rolls over.
Uninsured/underinsured motorist pays for medical expenses, loss of income and other damages to you and your employees if you are in an accident caused by a motorist who is uninsured or underinsured.
Medical payments coverage helps you, your employees and your passengers cover medical expenses arising from motor vehicle accidents.
Personal injury protection (PIP) is another type of coverage that pays for medical expenses and, in some states, lost income.
Some commercial auto insurance companies tailor their coverage to specific types of businesses. For example, some might provide coverage for the equipment inside contractors’ vehicles. Others let you add additional coverages, like roadside assistance, towing and auto loan or lease coverage.
Why do you need commercial auto insurance?
Besides being legally required in most states, commercial auto insurance is necessary to protect your business against liability lawsuits and other losses. In general, if you use a vehicle to complete tasks related to your business (other than commuting), you need a commercial auto insurance policy.
You may also need commercial auto insurance if you transport goods or people in your vehicle or need higher liability limits due to the nature of your work. The same applies if employees operate vehicles or vehicles are registered under the name of a corporation or partnership.
If you rent or borrow vehicles while doing business, commercial auto insurance may reimburse you for damages after an accident. Commercial auto insurance can even help you cover the difference between the value of your company vehicle and the outstanding balance on your auto loan or lease.
How to avoid commercial auto insurance scams?
Scams and fraud are common in the insurance industry, and the commercial car insurance sector is no exception. When purchasing a commercial auto policy, business owners should have a clear idea of their insurance needs so as not to end up paying for unnecessary coverage. It’s also a good idea to review your commercial auto policy and understand exactly what it covers and to what extent. This should help you avoid surprises come time to file a claim.
Besides getting roped into unnecessary coverage, you should also watch out for scammers looking to file fake injury claims or get your personal information to file fraudulent accident claims against your policy. To avoid these types of situations, drive safely, consider installing a dash cam on your vehicle and document accidents thoroughly by taking plenty of pictures.
Commercial auto insurance companies FAQs
What does the term “auto rebill commercial carrier” mean on my insurance bill?
The term commercial carrier or motor carrier generally refers to owners of large motor vehicles such as trucks, trailers and semi-trucks. If you see this line in your auto insurance policy, it most likely refers to the monthly commercial auto insurance premiums you pay for this type of vehicle.
Who has the best rates for commercial auto insurance?
Commercial auto insurance rates can vary widely depending on your business type and the state in which you operate, so we recommend getting quotes from several different insurance carriers to find the lowest rates for your business.
If you don’t know where to start, some insurers — particularly Auto-Owners and Progressive — offer many discounts for commercial auto insurance that can help you lower your premiums.
How can I find the best commercial auto insurance companies near my area?
Many of the commercial auto insurance companies in this article operate in every state or nearly every state. Larger insurers like Progressive and Farmers have tools on their websites that let you enter your zip code to check whether coverage is available near you. Most commercial insurers also have a “find an agent” button to help locate agents in your area.
What is the difference between personal and commercial auto insurance?
Commercial auto insurance usually includes coverage options you also get with personal auto insurance policies, such as liability, comprehensive and collision, and uninsured/underinsured motorists coverage.
However, unlike private passenger auto insurance, commercial policies tend to vary much more by insurance company both in what and how much they cover. These policies also offer higher coverage limits and cover a broader range of vehicle types and uses.
And since insurance companies take on more risk when insuring commercial vehicles (because of their higher coverage limits and potential for claims) commercial policies generally cost more than private passenger auto policies.
How can I get a commercial auto insurance quote?
Most commercial insurance companies will only provide quotes over the phone. However, companies like Allstate, Federated Insurance and Great West Insurance Company provide quotes online.
To obtain a quote online, be prepared to provide your business address and phone number. You should also have your vehicle ID numbers (VIN) and driver’s license information for all drivers who will be insured.
How we found the best commercial auto insurance companies
We found the best commercial auto insurance companies by comparing the following:
Available coverage options industry ratings customer complaints
Available discounts
Types of vehicles covered
Every business is different, and the best choice will ultimately come down to what works best for your company.
Still, some commercial insurance companies consistently come out on top regarding ratings from industry groups like J.D. Power, AM Best and NAIC. Our top picks for the best commercial auto insurance companies generally fare well in some or all those rankings, showing strong performance across the board.
Summary of the best commercial auto insurance companies of 2023
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