Whether your company owns and operates a fleet of pickup trucks or a single car, the reality is many businesses use the same vehicle for business and personal reasons. But not all business use requires a commercial auto insurance policy. So how do you know which you need?
Factors to Consider
Since every business is unique and each insurance company uses different standards, it’s a good idea to consult a professional business insurance broker. Some of the variables that can help you determine if your business requires commercial auto insurance include:
- Number of vehicles owned Who’s driving the vehicle(s)—If you need to list other employees as drivers, you need commercial auto insurance
- How often the vehicle is used for commercial purposes—talk to your agent about what is defined as “business use”
- Type and size of vehicle
- Registration—if the vehicle is registered in the name of the business, you need commercial auto insurance.
Safeguard Your Vehicles
Similar to personal auto insurance, a commercial auto policy will likely include a combination of bodily injury, property damage, collision and comprehensive coverage, including:
- Vehicle repair or replacement after an accident
- Damage caused by theft, vandalism or inclement weather
- Property damage expenses
- Injury or damage to others
- Medical bills.
Also, if your company’s vehicle is involved in an incident that causes damage to someone’s property or gets in an accident with another car, driver, passenger or pedestrian, commercial auto insurance would offset related costs.
Get more insurance advice, contact TriState Business Insurance.
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