Just as businesses are responsible for their product, customer satisfaction and profit, they are also responsible for the vehicles they put on the road for that business. Companies aren’t excused from covering themselves on the road, especially when they are utilizing a “work” vehicle, and other employees are operating it. This is why getting covered under a commercial insurance policy is so important for businesses- they have their entire business to lose.
A commercial insurance policy, just as a personal auto policy, covers your vehicle, except the policy operates under your business’s name. Your company is the primary insured.
A commercial policy includes liability, collision, comprehensive, medical payments or personal injury protection, and uninsured/underinsured motorist. For bodily injury, if you are at fault, your commercial policy pays for injuries to others. Liability coverage greatly helps your business avoid lawsuits.
Now, not every service requires a commercial policy. Depending on your business, it’s size, it’s purpose and what it’s transporting, you may be adequately covered on your personal auto policy.
Here are businesses that don’t necessarily call for commercial coverage:
Marykay or Tupperware consultant – As long as this isn’t your primary business, and you are just selling the product, then a personal policy will do just fine. However, if this is your full-time job, and you drive over 100 miles a day, 500 miles a week, then you need to enroll in a commercial policy.
Home health care and social workers – as long as they don’t regularly transport people, a personal auto policy will do.
- Real estate agents
Here are businesses that need commercial coverage:
While these businesses can get away with a personal auto policy, most companies that deliver and depend on a vehicle for regular service, need commercial vehicle insurance. You need a commercial policy if you are:
- Using the vehicle to transport goods or people for a fee.
- Using the vehicle to conduct a service.
- Hauling tools/equipment or towing a trailer to conduct your business.
- Carrying hazardous materials.
- Carrying housing-keeping equipment for your business.
- Towing for hire.
- Delivering goods (pizza/flowers/wholesale retail).
- Delivering newspaper (in a rural area).
- A messenger, deliverer or chauffer.
And you certainly need a commercial policy if employees operate the vehicle, or ownership is under the business name. Vans and pick-ups over 10K in weight are covered under a personal auto policy.
If you’re operating a business that utilizes transportation regularly, you need to get that vehicle covered immediately. If one of your work cars gets involved in an accident, not only will you be down a car (possibly your only one) – you may lose your business altogether. If someone is harmed or serious damage occurs, prepare for lawsuit.
As a business-owner, it’s your responsibility to cover all aspects of your business, and the company car is one of the most important. Don’t let an accident destroy your livelihood. Cover yourself and keep your business intact for the long road head. Call one of our Insurance Architects to put your commercial insurance policy into place today!