Suppose you run a small business, use a personal vehicle for business purposes, or have a dedicated car for business purposes. In that case, you need to make sure you are carrying the proper insurance on that vehicle. As a small business owner, you will want to carry a commercial auto insurance policy on any vehicle you use for business purposes.
Understand What Business Activities Require Commercial Insurance
First, it is essential to understand what type of business activities will not be covered with a personal auto insurance policy. If you are transporting people for a paid fee, you need commercial auto insurance. If you are transporting goods for a paid fee, you need commercial auto insurance. If you are conducting services with your vehicle, you need commercial auto insurance. If you are hauling lots of equipment for your business, you need a commercial policy.
If you get into an accident while doing business work, don't expect your insurance policy to cover the accident. You need a commercial policy if you are doing business work or hauling business equipment with your vehicle.
Covers All Types of Vehicles
Many people wrongly assume that commercial vehicle insurance only covers food trucks, work vans, and service utility trucks. However, commercial vehicle insurance can also be used for regular vehicles used for business purposes. For example, if you have a standard car used for business errands and transportation, that vehicle can qualify for a commercial auto insurance policy. The main qualifying criteria are how the vehicle is being used, not what type of vehicle it is.
Know Who to Add to the Policy
With a commercial auto insurance policy, you should make sure that anyone who drives the vehicle regularly is a named driver on your policy. You can have a long list of qualified drivers on your policy. In addition, all employees and your family members should also be covered as drivers, even if they are not explicitly named on the policy.
Enjoy Higher Liability Limits
With a commercial auto insurance policy, you will get to enjoy higher liability limits. This will help protect your business assets if you ever get into an accident. Higher liability limits will help protect your business assets and ensure that an accident doesn't bring your business down.
If you own a small business and use a vehicle for business purposes, you need to talk to your insurance agent about getting commercial auto insurance coverage. A commercial auto insurance policy will help protect your business. Look around to find the auto insurance coverage that works for you and your needs.
