Enough to survive a bad day without losing the business, and not so much that you are paying for coverage you will never use. Here is how we think through commercial auto coverage for Houston businesses, in the order it actually matters.
If you own a vehicle that earns money, these are the four that do the heavy lifting. Everything after this list is a decision about how much risk you want to keep.
Pays others when you are at fault. Set the limit to what your customers require.
Repairs or replaces your own truck after a collision, hail storm or theft.
Pays medical bills for you and your passengers, no matter who caused the crash.
Covers rentals and employees driving personal vehicles on company business.
Nine coverages show up on commercial auto quotes in Texas. Most businesses need four to six of them. Here is the honest version of each.
Pays for bodily injury and property damage you cause to someone else. Texas minimum limits for private passenger vehicles are 30/60/25, but commercial vehicles and customer contracts often require far higher limits. Most of our Houston clients carry a $1 million combined single limit or a $1 million umbrella on top.
Texas PIP pays medical bills and lost wages for you and your passengers regardless of fault. It is optional on most commercial policies, and it fills a gap that health insurance sometimes leaves open for a driver injured on the job.
Texas has a large number of uninsured drivers. UM/UIM pays when the at-fault driver has no coverage or not enough to cover your truck, your cargo and your injuries. For high-mileage vehicles it is one of the best values on the policy.
Collision covers impact with another vehicle or object. Comprehensive covers hail, flood, fire, theft and vandalism. If a lender or lessor has an interest in the vehicle, they will require it. Choose a deductible you could actually pay after a bad month.
Extends liability to vehicles you rent and to employees driving their own cars for business. Without it, a delivery in a personal car can leave both the employee and the company exposed, because personal policies exclude business use.
Covers the freight you are carrying for someone else, up to the limit you buy. Shippers often set minimum cargo limits in their contracts. Limits should reflect the value of a typical load, not the size of the truck.
Protects you when you pull a trailer owned by a shipper or another carrier, which happens constantly in port and warehouse work. It responds to damage to that trailer while it is in your care.
Also called bobtail. It covers a leased-on owner-operator when the truck is used for personal reasons rather than under a carrier’s authority. If you lease to a motor carrier, ask how their policy and yours fit together.
Commercial auto pays for vehicle accidents. It does not pay for property damage you cause at a job site or a customer’s building. General liability handles that, and an umbrella adds a layer above both when contracts demand higher limits.
The right coverage depends on what the vehicle does, not what it is called. These are the combinations we put together most often.
HVAC, plumbing, pest control or mobile detailing. Liability, physical damage, PIP and hired/non-owned auto are the core. If tools and equipment ride in the van, make sure the value is covered somewhere, because auto policies have limits on permanently installed equipment.
Liability plus physical damage on trucks and trailers, with equipment scheduled. Additional insured and waiver of subrogation endorsements are usually required by the general contractor. Pair the auto policy with general liability, and workers’ comp if you have employees.
Higher liability limits, physical damage on each unit, hired and non-owned auto for overflow drivers, and cargo coverage if you carry customer freight. Driver hiring and MVR monitoring matter as much as the policy itself.
The ones that come up on nearly every quote call.
Start with auto liability at limits your customers accept, then add physical damage if you own the trucks, PIP or medical payments for the people inside, uninsured motorist coverage, and hired and non-owned auto if anyone drives a rental or a personal car for work. Add cargo or trailer coverage when you haul freight or pull trailers.
Liability coverage is required for any vehicle driven on public roads, and a vehicle used for business should be insured commercially. Texas minimum limits are 30/60/25, but commercial work usually calls for higher limits because customers, shippers and lenders require them.
Only in a limited way. Permanently installed equipment can often be scheduled on the auto policy, but loose tools and materials are usually excluded or capped. Those belong on a commercial property or inland marine policy. We review both so nothing important falls between them.
Commercial auto responds to injuries and damage caused by a vehicle. General liability responds to injuries and property damage at your premises or job site that do not involve a vehicle. Most Houston businesses with trucks need both policies, and sometimes an umbrella above them.
Tell us what the truck does and who drives it. We will tell you what to carry, what to skip, and what it costs.
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