What is a commercial auto endorsement used for?

A commercial auto endorsement is typically used to ensure coverage for non-owned vehicles. This is important for businesses that may use vehicles not owned by the company for business purposes. Having this endorsement allows for liability protection and coverage for accidents or damages that may occur while using those vehicles in the course of business.

For businesses utilizing various transportation methods, protecting against risks associated with non-owned vehicles is crucial. It helps mitigate potential financial losses from accidents that could happen while employees are using personal or rented vehicles for company activities. This endorsement addresses typical coverage gaps that a standard commercial auto policy might not cover when a business is operating with vehicles not registered under its name.

The other options don’t accurately represent the purpose of a commercial auto endorsement. For instance, personal watercraft would be covered under different kinds of personal insurance, while increasing limits for property damage or eliminating liability coverage does not relate to the specific function of a commercial auto endorsement.