Commercial auto policies exist to protect your company’s vehicles in ways that go beyond a personal policy. They include provisions for covering drivers employed by the company, as well as additional coverage for the liabilities incurred when your vehicle is on the road representing your business. They’re only necessary if your business owns or leases the vehicle, though. Many small business owners use a personal vehicle for business purposes like traveling to meetings, running errands, or picking up wholesale orders for stock. Much of the time, this use of a personal vehicle still falls under a personal auto insurance plan, but not always.
Understanding When You Need a Commercial Policy
Deciding on personal vs. commercial auto policies is easy when the business owns the car, but if you’re not sure whether you need additional commercial insurance on a personal vehicle, it’s time to review your existing auto policy for exclusions that create gaps in your coverage when you use the vehicle for business purposes. Finding these exclusions can be difficult if you’re not used to reading insurance documents, but you should be able to get help from a commercial insurance provider who knows what they usually have to cover and which companies are more likely to have those exclusions. That way, you can be sure you’re always covered, no matter what you’re doing with your car today.