Many business owners drive to and from work using their personal vehicles. They may go to meetings across town. They may even go from one client location to the next. In such cases, personal auto insurance may or may not cover the individual and the vehicle.
However, there comes a time when investing in commercial auto insurance becomes necessary. When do you need a commercial policy? When are you lacking protection in a personal policy? Here are a few things to know.
Are You Using Your Vehicle For Business Needs?
A good indication that you need a commercial auto insurance policy is your use of it. Are you using it to conduct business? If so, you need a policy that protects your vehicle, driver, and inventory or equipment on board.
- Are you using it to deliver goods?
- Are you using it as a taxi service?
- Are you using it to deliver supplies from one location to the next?
If so, you need to consider a commercial auto insurance policy. It should fit the type of business you are operating. Other specific uses exist. So, tell your insurance agent exactly how you plan to use your vehicle and what goods you carry. Your agent can help you determine if you need a commercial auto insurance policy.
Who Is Driving Your Vehicle?
Yet another concern is who is behind the wheel. Your personal auto insurance policy protects you. It can protect other drivers of your vehicle. However, if you have employees using your vehicle, or other non-listed drivers, you need to consider a commercial policy. This is true in situations where you use employees to operate your vehicle routinely.
Is Your Vehicle Designed for Work Needs?
Some businesses have vehicles designed for their operations. For example, you may have a built-in snowplowing system. You may have hydraulic lifts. In other cases, you may have a vehicle, such as a truck, that pulls heavyweight, generally over 10,000 pounds. You may also want to use a commercial auto insurance policy if you have ladder racks, permanent equipment on board, or toolboxes. If you store items in your vehicle on a routine basis that are for work needs, such as equipment or tools, this also indicates a need for a professional policy.
A commercial auto insurance policy can be a very good investment. It can minimize most of your risks both to the driver and to your equipment on board. However, for that to happen, you need the right coverage. Discuss your options with your insurer.
Also Read: Businesses Require Vehicle Insurance Just Like Everyday People