Do You Need Business Car Insurance?

January 21, 2017 · Posted in General Articles on 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 okay when the companies were sole proprietorship, 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.

So what should you do? You should probably examine your current policy and consult with a qualified insurance agent. You do not want to risk your company because of inadequate coverage. You do not want to risk violating your policy terms and then find out an accident won’t be covered.

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.

Of course, you think about damage to vehicles. Your car, and other cars, could be damaged in a wreck. But personal injury liability insurance may be a bigger issue. If you let others drive your car, or if you pick up passengers, you should be particularly concerned about commercial vehicle insurance.

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 accident or theft.

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

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