Do You Need Business Car Insurance?
Lots of small business people, especially those who base their business from a home office, rely on their own car insurance to cover a vehicle that gets used to do business. This may have been alirght when the business was very small. But as that enterprise grew, took on more inventory and supplies, hired employees, and started to pick up passengers, this may be a big mistake.
Indeed, as the businesses grow, they do start moving inventory, carrying supplies, and allowing employees to drive the business owner’s car.
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.
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.
You need to be concerned about damage to your own vehicle, and also to other people’s cars and property. But you also need to make sure that your business is protected in case your employee, or another person, is injured in the accident. Do you pick up passengers? Personal injury suits are serious these days. If you pick up passengers to conduct your business, your standard personal injury limits may be way too low.
Do you carry products in your vehicle. Your inventory and supplies are at risk for damage or theft. Is this covered under your personal policy. If you are not sure, you should be inspecting your policy right now. If your inventory or supplies were damaged or stolen, can your business afford to replace them? Many companies operate on a small margin. Covering these assets with an adequate policy is how a company can minimize this risk.
Be aware that the lack of proper business vehicle coverage can put your own business at risk.
Get more help with Commercial Car Insurance.