Personal auto insurance policies can sometimes provide enough auto insurance coverage for certain small businesses. This is true even if you or your employees are driving personal vehicles for business use such as running to the bank or picking up lunch. However, if your business specifically uses a vehicle as part of its operation you need a commercial auto insurance policy to protect you and your business from the financial consequences of negligent drivers or other commercial auto-related claims for which your company may be held liable.
A commercial auto policy or a fleet policy typically provide higher limits of coverage, may offer coverage for rented vehicles, and even have options to cover non-owned vehicles (i.e. an employee’s car used for company business).
Remember, commercial insurance is about providing coverage for actions for which your business could be held responsible. Although all motorized vehicles require auto insurance, Commercial Auto or Fleet Insurance is the specific tool necessary for protecting your business. This becomes even more crucial if a business operates with specialty cars, trucks, or other unusual vehicles, hauls special products or equipment, transports goods or people, or has other unique needs.
Every business benefits from insurance but not every policy protects against every liability. Be sure to review your business needs and possible risks. Some factors to consider when reviewing a commercial auto policy include:
• Vehicle Title – Does the business own the vehicle or do you personally own the vehicle?
• Drivers – Do you have employees using company-owned vehicles or their personal vehicles?
• Usage – Do you deliver people, packages, or is the vehicle a “work truck” carrying equipment necessary for performing services offered by your business ?”
• Garage – Where is the vehicle stored when not in use?
Examples of businesses that need a Commercial Auto Policy
• Catering Services • Contractors • Day Care Centers • Dry Cleaners • Escort Vehicles • Event Planners • Florists • Food Delivery • Funeral Homes • Furniture Stores • Interior Designers • Janitorial Services • Landscapers • Limousine Services • Medical Courtesy Autos • Mobile Concessions • Mobile Pet Groomers • Non-Profit Organizations • Print Shops • Security Patrols • Snow Plow Services • Tow Trucks.
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