What does commercial auto insurance primarily cover?

Commercial auto insurance primarily covers vehicles that are used for business purposes. This type of insurance is specifically designed to provide coverage for businesses that use vehicles as part of their operations, such as delivery trucks, service vehicles, or company cars. The coverage includes liability for bodily injury and property damage, as well as physical damage to the vehicles involved in a business-related incident.

This distinction is essential because personal auto insurance typically does not cover vehicles when they are being used for business activities. Therefore, it is crucial for businesses to have a separate commercial auto insurance policy to ensure they are adequately protected against potential risks associated with their business vehicle operations.

The other options do not align with the primary purpose of commercial auto insurance. Personal vehicles used for leisure are generally covered under personal auto insurance. Motorcycles and recreational vehicles fall under different insurance categories and may require specialized coverage. While physical damage to vehicles is a component of commercial auto insurance, it is not the sole focus; liability coverage is a significant aspect that protects against accidents involving business use.