Do You Need Business Car Insurance?
Many small business owners, particularly home based business owners, use their personal auto insurance policy to cover vehicles that are used for company work. In some cases it was ok when the companies were sole proprietorships, and the business owner was the only one to drive the car to an occasional meeting or client interview. Even as the businesses grew, the owner could add a business endorsement to a personal policy, which would provide adequate coverage.
I have seen many of these companies grow. As they grow, they start using the same personal car to pick up inventory, haul equipment, and even pick up passengers. In addition, some business owners even allow employers to borrow the car for work.
So what should you do? You should probably examine your current policy and consult with a qualified insurance agent. You do not want to risk your company because of inadequate coverage. You do not want to risk violating your policy terms and then find out an accident won’t be covered.
Mileage limits could be too low. If you covered your car when you just use to use it to shop for groceries or ferry kids to soccer games you may be exceeding the mileage estimates you declared when you filled out your initial application.
If you let your workers take the car on errands, or if you expect them to use their own personal vehicles, it is a good time to consider commercial vehicle insurance.
Of course, you think about damage to vehicles. Your car, and other cars, could be damaged in a wreck. But personal injury liability insurance may be a bigger issue. If you let others drive your car, or if you pick up passengers, you should be particularly concerned about commercial vehicle insurance.
Do you carry products in your vehicle. Your inventory and supplies are at risk for damage or theft. Is this covered under your personal policy. If you are not sure, you should be inspecting your policy right now. If your inventory or supplies were damaged or stolen, can your business afford to replace them? Many companies operate on a small margin. Covering these assets with an adequate policy is how a company can minimize this risk.
I is important to understand how adequate commercial vehicle coverage can protect you.
Learn more about Commercial Vehicle Policies .
