Does Your Business Need Commercial Car Insurance

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.

But as some of these businesses grew, purchased inventory and equipment, and even hired employees, they may have outgrown a personal policy.

But let us consider the first issue. Have you told your insurer you use your car for business? If not, you could be taking a big risk as your personal policy may not have coverage limits that are adequate, or you may actually be violating your policy.

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.

If you let your workers take the car on errands, or if you expect them to use their own personal vehicles, it is a good time to consider commercial vehicle insurance.

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.

Be aware that the lack of proper business vehicle coverage can put your own business at risk.