If you are a small business owner you may be asking the question do I need commercial auto insurance for my business. This truly depends on the type of business that you have and if you ever use a vehicle for business purposes. Most small businesses feel that they don’t need commercial auto insurance if they are using their personal vehicle occasionally for the purpose of business. Did you know that most personal auto insurance coverage does not cover a vehicle that is being used for commercial purposes? This is an insurance issue that can get very sticky if not properly understood.
Some small business owners feel that if their personal vehicle is covered by auto insurance then it will take care of any accident that occurs. This is not true and can be very costly to you and your business. The majority of personal auto policies will not cover your personal vehicle when used for commercial use. The best way to find out about your coverage whether personal or commercial is to talk with your agent or insurance broker.
Some specific examples of when you need commercial auto insurance are hauling heavy tools or equipment especially with a trailer, transporting goods or people when charging a fee for service, and if the vehicle is owned by the company with employees driving it. These are just a few examples were this type of insurance is necessary. If an accident occurs whether it just damaged goods or hurt employees then law suites can wipe out a small business.
Commercial auto insurance for your business is another one of those insurance that is a necessary part of operation especially for those that require employees to be on the road. Finding the best price for this type of insurance can be time consuming but doing the footwork or having a broker do this for you can save you money in the long haul. You would never think about driving your personal vehicle without coverage nor should you for your business.
There are many companies that provide commercial auto insurance for business whether they are small or large companies. Checking to see whether you need to carry this type of insurance as a small business owner is important to protecting your business should some unfortunate accident occurs. Not only does it protect your business but it covers those employees that may be injured. If you are unsure of the need for commercial auto insurance or have questions please feel free to ask them.
