What Vehicles Are Covered Under a Commercial Auto Insurance Policy in Michigan? (Explained)

What Vehicles Are Covered Under a Commercial Auto Insurance Policy in Michigan? (Explained)

If your business owns or uses vehicles for work, commercial auto insurance is a must. But not all policies cover the same types of vehicles — coverage depends on how your policy is structured and which symbols are listed on the declarations page.

Understanding these symbols and how they apply to your vehicles helps ensure your business has the protection it needs in Michigan’s no-fault insurance environment.

Understanding Commercial Auto Coverage Symbols

Insurance companies use numbered symbols (1–9) to define which vehicles are covered. Here’s a breakdown of what each means:

• Symbol 1 – Any Auto:
  The broadest coverage available. It includes all vehicles used for business purposes — whether owned, leased, rented, or employee-owned. Usually applies to liability coverage, not physical damage.
• Symbol 2 – Owned Autos Only:
  Covers vehicles the business owns, such as company cars, trucks, or work vans. It does not extend to rented or employee-owned vehicles.
• Symbol 7 – Scheduled Autos Only:
  Applies only to vehicles listed (“scheduled”) on the policy. If it’s not listed, it’s not covered — so this symbol requires frequent updates when vehicles are added or removed.
• Symbol 8 – Hired Autos:
  Covers vehicles your business rents, leases, or borrows — but not employee-owned vehicles.
• Symbol 9 – Non-Owned Autos:
  Protects the business if employees use their own personal vehicles for work errands.

How These Symbols Work Together

Many businesses use a mix of symbols for different coverage types.
For example, a company may use Symbol 1 (Any Auto) for liability, but Symbol 7 (Scheduled Autos) for physical damage, so only listed vehicles are covered for collision and comprehensive losses.

The right combination depends on how your business uses its vehicles day to day.

Why Hired & Non-Owned Auto Coverage Is So Important

If employees rent vehicles or drive their own cars for work, your business could still be held responsible if an accident occurs.

That’s why Hired & Non-Owned Auto Coverage (Symbols 8 & 9) is essential. It fills the gap when your business doesn’t own the vehicle but is still exposed to liability.

Without it, your business might be left covering the damages out of pocket.

Michigan-Specific Coverage Requirements

Michigan is a no-fault insurance state, meaning all commercial auto policies must include Personal Injury Protection (PIP) coverage.

PIP covers medical expenses, lost wages, and related costs for drivers and passengers, regardless of who was at fault in the accident.

Business owners should review their PIP options carefully — especially if their employees regularly drive for work.

Other Key Factors to Consider

• Liability vs. Physical Damage:
  Liability covers injuries or property damage you cause to others. Physical damage covers your own vehicles for collision or comprehensive losses. If you want physical damage protection, your vehicles typically need to be listed under Symbol 2 or 7.
• Who’s Driving:
  Some policies restrict coverage to named drivers, while others allow “permissive use.” For fleets, make sure all employees with access to company vehicles are covered.
• Trailers & Equipment:
  If your business uses trailers to haul tools or materials, they may need to be specifically listed on the policy to be covered.
• Personal vs. Commercial Use:
  Most personal auto policies exclude business use. If you or your employees use personal vehicles for work, make sure you have Hired & Non-Owned Auto coverage in place.

Bottom Line

Your commercial auto policy should reflect how your business actually operates — whether that means company-owned trucks, rented vans, or employees using their own vehicles.

Understanding coverage symbols and Michigan’s PIP rules ensures your policy is structured correctly and your business stays protected from costly gaps in coverage.

Work with an experienced Michigan commercial insurance agent to review your policy and confirm that every vehicle you rely on for business is properly insured.