Commercial Auto insurance
Many sole proprietors and small business owners mistakenly believe that their personal insurance policies provide coverage anytime they are using their cars. In reality, if a vehicle is used for both personal and business uses, claims against the personal policy may be denied if an accident or other incident occurred while the vehicle was being used for business purposes.
Even if you also use your commercial vehicle for personal reasons, insurance companies may deny a claim against a personal insurance policy because the vehicle is sometimes used for business purposes.
Commercial auto insurance provides expanded coverage, and it may be needed in a variety of different scenarios, including if a vehicle is used for any of the following types of business:
- Providing taxi, limo or other car-for-hire services;
- Picking up goods for the business;
- Running errands for the business (i.e. post office, bank, etc.);
- Delivering business products or goods;
- Driven by an employee for any business reason;
- Vehicle has equipment used to support a business, such as ladders, hydraulic lifts, kitchen equipment for a food truck, etc.;
- Vehicle is owned by/titled to a business.
This list is not a complete list of situations in which commercial coverage is needed, but these are the most common things self-employed or small business owners should consider when reviewing insurance needs and coverages.
Commercial auto insurance should be tailored to your business needs. As a general rule, commercial policies provide increased liability coverage, coverage for employees’ use of a business vehicle (or a business owner’s vehicle), and coverage for business use of vehicles not owned by the business, among other benefits.
To learn more and to review your coverage needs for your business, Contact Us today.