A recent survey reveals that 42% of small businesses with commercial vehicles reported an auto-related incident in the past year, with average out-of-pocket costs reaching $5,725 per accident. The findings, from Pie Insurance's 2025 State of Workplace Safety Report, underscore the financial risks that mobile businesses face and the need for adequate commercial auto coverage.
The survey, conducted by YouGov PLC, polled 1,018 U.S. small-business owners and decision-makers at companies with between two and 500 employees. It was fielded January 9-18, 2025. The data highlights the prevalence of vehicle incidents among businesses that rely on trucks, vans, and other commercial vehicles for daily operations.
Inter Insurance Agency, which provides insurance solutions for businesses, says the findings serve as a timely reminder for business owners to review their commercial auto policies. Tim Derham of Inter Insurance Agency noted, "For many small businesses, the work truck isn't just a way to get from one place to another. It's essentially a rolling office. When that vehicle is damaged or involved in an accident, you're potentially dealing with much more than a repair. You may be dealing with interrupted jobs, lost working time and liability exposure."
Commercial auto insurance is designed to protect vehicles used for business purposes, including company cars, vans, and pickup trucks. Depending on the policy, coverage can include liability, collision, comprehensive, and uninsured or underinsured motorist protection. Liability coverage helps protect a business following a covered accident involving bodily injury or property damage. Collision coverage helps cover damage to the insured vehicle after a covered accident, while comprehensive coverage provides protection against certain non-collision losses such as theft, vandalism, and weather-related damage. Uninsured and underinsured motorist coverage offers additional protection when another driver lacks adequate insurance.
For contractors, plumbers, electricians, landscapers, delivery companies, and other mobile businesses, vehicles are often in use throughout the working day and are essential for completing jobs and serving customers. Inter Insurance Agency recommends that businesses periodically review their commercial auto policies, particularly when adding vehicles, hiring employees who will drive for the company, or changing how existing vehicles are used.
"The important question is whether the coverage you purchased still reflects the business you're operating today," Derham said. "A business can change significantly in a year, and its insurance should keep pace."
The survey's findings highlight the potential financial impact of auto incidents on small businesses. With average out-of-pocket costs exceeding $5,700, even a single accident can strain a small business's budget. For companies that rely heavily on vehicles, the risk is even greater. The report suggests that businesses should not only review their coverage limits but also consider additional protections like uninsured motorist coverage, especially in areas with high rates of uninsured drivers.
Inter Insurance Agency emphasizes that commercial auto insurance is not a one-size-fits-all solution. Each business has unique needs based on its industry, vehicle usage, and employee driving habits. Working with an experienced insurance agent can help business owners identify gaps in coverage and tailor policies to their specific operations.
As the survey shows, vehicle incidents are a common occurrence for small businesses with commercial fleets. By taking proactive steps to review and update their commercial auto policies, business owners can better protect their operations from the financial fallout of an accident.
