A recent survey has found that 42% of small businesses with commercial vehicles reported an auto-related incident in the past year, with the average out-of-pocket cost reaching $5,725 per accident. The findings, part of Pie Insurance's 2025 State of Workplace Safety Report, are based on a YouGov survey of 1,018 U.S. small-business owners and decision-makers at companies with between two and 500 employees.
The data serves as a timely reminder for business owners to review how their vehicles are insured, according to Inter Insurance Agency. For many small businesses, the work truck or van is not just a mode of transportation but essentially a rolling office. When that vehicle is damaged or involved in an accident, the impact can extend far beyond repairs, including 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. Policies can include liability, collision, comprehensive, and uninsured or underinsured motorist coverage. 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 offers protection against non-collision losses such as theft, vandalism, and weather-related damage. Uninsured and underinsured motorist coverage provides additional protection when another driver lacks adequate insurance.
For contractors, plumbers, electricians, landscapers, delivery companies, and other mobile businesses, vehicles may be in use throughout the working day and are essential to 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.
Tim Derham of Inter Insurance Agency emphasized the importance of ensuring coverage matches the current business operations. "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, commissioned by Pie Insurance and conducted by YouGov, was fielded January 9-18, 2025. It highlights the financial risks associated with commercial auto accidents, which can be a significant burden for small businesses. With the average out-of-pocket cost exceeding $5,700, a single incident could have a substantial impact on a small company's bottom line.
Given these findings, business owners are encouraged to assess their current coverage and consider whether they have adequate protection for their vehicles. Regularly reviewing policies can help ensure that businesses are not left vulnerable to unexpected expenses in the event of an accident. As the survey shows, auto incidents are not uncommon for small businesses, making it crucial to have the right insurance in place.
