When exactly do I need commercial auto insurance?

A commercial auto insurance is required for any vehicle that you use for business purpose, provided it is also registered as a commercial vehicle. A commercial vehicle will also have a commercial license plate or tag.

The following functions are usually performed by commercial vehicles only and therefore need commercial auto insurance cover:

  • Using the vehicle to carry equipment and machinery.
  • Using the vehicle to transport flammable or hazardous material.
  • Using the vehicle to transport housekeeping equipment for business purpose.
  • Using the vehicle to tow other vehicles.
  • Using the vehicle to carry cranes plows etc.
  • Using the vehicle to deliver retail or wholes sale products.
  • Using the vehicle to deliver newspaper.
  • Using the vehicle to transport people as cab or auto rickshaw service.
  • Using the vehicle to run miscellaneous errands on behalf of a business.