Do You Need Commercial Auto Insurance

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Featured Post Best Auto Insurance Company: How to Find One That’s the Best fo

Finding an auto insurance is not difficult, but to find the best auto insurance company is a tough job, which requires some research, information and a bit of luck. When you are on a lookout for an auto insurance company, you generally go by the quotes provided by the company. But always remember,...

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You get in a wreck and find your car insurance won’t cover you. What happened? If you were conducting business and you were not carrying a commercial policy, you could be in danger.

So, if you are a business owner, following up with the type of auto insurance you have is critical as you and your business could end up being liable.     To start, you need the same kinds of insurance coverage for the car you use in your business as you do for a car used for personal travel — liability, collision and comprehensive, medical payments (known as personal injury protection in some states) and coverage for uninsured motorists. In fact, many business people use the same vehicle for both business and pleasure. If the vehicle is owned by the business, make sure the name of the business appears on the policy as the “principal insured” rather than your name. This will avoid possible confusion in the event that you need to file a claim or a claim is filed against you.

Whether or not you need to buy a business auto insurance policy will depend on the kind of driving you do. A good insurance agent will ask you many questions about how you use vehicles in your business, who will be driving them and whether employees, if you have them, are likely to be driving their own cars for your business.

While major auto coverage is the same, a business auto policy differs in many technical respects. For instance, if you have a personal umbrella liability policy, there’s generally an exclusion for business-related liability. So are you safe?

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