Does Your Business Need a Commercial Vehicle Policy?

Do You Rely on Personal Insurance for Your Business Car?

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.

Indeed, as the businesses grow, they do start moving inventory, carrying supplies, and allowing employees to drive the business owner's car. You could be taking a big risk, and it may be time to investigate a couple of options. You may be able to add a business use endorsement to your vehicle, or you may need to purchase a commercial car insurance policy.

Now is the time to examine your need for business car insurance.

If you are concerned about the use of your personal vehicle for business, it would be a good idea to inspect your own personal policy. You should also speak with a qualified insurance agent. It would be awful to lose your business because of poor business vehicle coverage.

Lots of us barely remember what we stated on our auto insurance applications because we have had the same policy for many years. But we may have understated some things, like estimated driving miles, just because our circumstance has change. If you took out your policy years ago, when you did not drive for business, you probably need to check your policy.

Do employees use the car, or do you expect them to use their own cars for work? You really should address your coverage if other people, not named in your policy, use your vehicle to perform your company business.

And while you should consider vehicle damage, both to yours and other people's cars, you also need to be concerned about medical liability. If you, your employee, or another person, is injured, damages can really start to add up fast. Does your business pick up passengers? Personal injury suits are common these days, and you do not want to lose your company over one.

What do you carry in your car? If you transport inventory or supplies, you are risking loss through damage or theft if they are not properly covered. Many small businesses really cannot afford to replace these items. Proper business car insurance can minimize risk in case of an acciden or theft.

You do not want to risk your business because you lack property business car insurance.

Learn more about Commercial Car Insurance.