In my last post I mentioned business vehicles and insurance, and that you really need a commercial business vehicle policy. And to me, there’s no negotiation on that – doing business without it is way too risky.
But just “why” do you need a commercial auto policy for a business vehicle? Here are a few reasons:
- Coverage limits are generally higher. And you need them to be higher. Monetary/liability-wise, your personal policy protects your personal life (your house/etc.), but if everything goes as planned, your business should be worth more. People also love to sue businesses. So there’s that.
- Coverage for employees driving. This is important – your personal policy likely will not cover employees driving the vehicle. A commercial policy should (note: all of these are general statements and suggestions – your insurance professional has the final word).
- Last post, I mentioned my friend’s trailer accident had a lot of gas spillage. Luckily there was no issue with that, but what if there was? What about other cargo you may be carrying? Is any of it toxic? What happens in the event of an accident? A commercial policy can (and should) include coverage for this.
- On the subject of business cargo, either yours or someone else’s… who covers that in the event of an accident? I promise you your personal auto policy won’t.
- Let’s say you and your employees go to a convention on business. You rent a car. There’s an accident. The rental company’s policy is bare bones and woefully inadequate. Your personal auto insurance policy says “well, you folks were there on business… talk to the company that sent you there”. A commercial auto policy for your business can cover this (again, talk to your agent regarding the details.)
There are a lot of other reasons why a commercial business vehicle policy makes sense. But the proceeding should give you a good idea on the basics.