Business Use of a Vehicle – When You Need Commercial Auto Insurance
When it comes to business insurance, there are various considerations around cars and auto insurance. Have you ever wondered if your business use of your personal vehicle requires any different coverage? Or whether your business vehicle actually requires a specific commercial auto insurance policy?
Let’s get into some of the details and in what types of scenarios a more robust, business specific insurance plan may be needed.
Owner of the car
In this case, it’s pretty straightforward. If it’s the business that owns the car, then commercial auto insurance should be purchased. Where there’s a bit more of a gray area is when the car is under someone’s name and is used for personal reasons, as well as business. Let’s dive into that a little further…
Use of the vehicle
If the car is used primarily for business purposes – such as on a daily basis, and/or to make deliveries or move merchandise around, then commercial auto insurance should be in place. Commercial auto insurance policies allow for specific add-ons for different business types, such as additional coverage that would protect a specific type of equipment or a specific type of use of the vehicle.
How about just using the car to get to and from work? That should be fine under a personal policy.
Talk to your provider about commercial auto insurance
The most important thing is to be up front with your broker or insurance provider about how the car is used and the specific details about any business use. This way you can ensure that you have the right coverage in place.
Commercial auto insurance coverage often has higher liability limits and damage amounts and other specific protections, such as coverage for the tools being carried in the car for example. It’s important for your business that you have the right auto insurance plan in place for your specific operations. You don’t want to be left in the lurch if you don’t have the right coverage or if you made assumptions on what you would be covered for under your personal insurance – often times business usage is specifically excluded.
If you have any questions about commercial auto insurance and what type of coverage you need for your business, reach out to someone from our team and we’ll be happy to help! Looking for a quote for commercial auto insurance? Request your quote now!