Quick Summary: Personal auto insurance often doesn’t fully cover business use—meaning your personal policy may leave major gaps if a vehicle is used for work. In Texas, many businesses need commercial auto insurance tailored to how their vehicles are actually used day‑to‑day. For companies across Tyler and all of East Texas, having the right coverage in place protects your team, your assets, and your financial security.

At Ark Assurance Group here in Tyler, TX, we help business owners understand what Texas requires, what their policies actually cover, and how to structure commercial auto protection around real‑world needs.

Texas Liability Minimums for Commercial Vehicles

Texas requires minimum liability limits for any vehicle on the road, but those minimums are rarely enough for business use. The state minimum includes:

• $30,000 per person for bodily injury
• $60,000 per accident for bodily injury
• $25,000 for property damage

For work trucks, vans, and vehicles carrying tools, materials, or employees, most companies need far higher limits. One accident involving a business vehicle can easily exceed state minimums—and businesses are more likely to face lawsuits.

Company‑Owned Vehicles

If your business owns the vehicles, you’re legally responsible for insuring them with a commercial auto policy. This typically includes:

• Liability coverage
• Collision and comprehensive coverage
• Uninsured/underinsured motorist coverage
• Medical payments or PIP coverage

Any vehicle titled to the business must be listed on a commercial policy—not a personal one—even if it’s driven home at night or used for personal errands.

When Employees Drive for Work

Texas businesses are also responsible for how employees use vehicles in the field. This includes:

• Employees driving company-owned vehicles
• Employees using their own vehicles for business errands
• Managers or owners who occasionally use personal vehicles for business

If an employee causes an accident while on the job, the business can be held liable—even if the vehicle wasn’t owned by the company.

Hired & Non‑Owned Auto: The Most Overlooked Coverage

Hired and non‑owned auto (HNOA) coverage protects your business when vehicles you don’t own are used for work. This is essential for:

• Contractors who have employees using personal trucks
• Service businesses sending workers out in their own cars
• Teams renting vans or box trucks for projects
• Businesses using gig drivers or short‑term rentals

HNOA is one of the most common gaps we see with new clients—it’s inexpensive and incredibly valuable.

Common Mistakes Texas Contractors & Service Businesses Make

We frequently see East Texas businesses run into avoidable problems, including:

• Relying on personal auto insurance for work use —most claims are denied if the vehicle is being used for business.
• Not listing all drivers —unlisted employee drivers can lead to coverage issues.
• Underinsuring work trucks and vans —especially those carrying tools or heavy equipment.
• No coverage for employees using their own vehicles —leaving the business exposed.
• Assuming subcontractors’ insurance covers you —it often doesn’t.

Protect Your Business on the Road

Whether you run a contracting company, service business, delivery operation, or any business that relies on wheels, the right protection is essential. Learn more about commercial auto policies here:

• Commercial Auto Insurance
• Commercial Insurance

Ready to compare quotes? Ark Assurance Group can help you review options from multiple carriers and build the right policy for your Texas business.