Do you own a business and are you properly insured, vehicle-wise? Remember that auto insurance varies depending on how the car is utilized. Normally, if you used your car for business purposes and it caused some damage, your personal car insurance will not cover the costs simply because it is a violation of the contract with the insurer. Some personal policy though, has a provision for business-use coverage, but that only contains minimum limits. This alone may not sufficiently cover the costs in case of an accident. Thus, make sure you are protected and buy yourself a business car insurance policy.
Insurers define commercial use as operation of a vehicle for transporting goods and services (human resources) in exchange for a fee or compensation. Examples may be catering, door-to-door consulting services, real estate agents doing client calls, newspaper & pizza delivery, and daycare transport. These are some of the instances that you are advised to get business car insurance for your protection against future lawsuits.
If still in doubt, ask yourself the following questions to know whether you need business car insurance or not:
- Are liability limits giving you that assurance that you are properly covered? Auto insurance for business generally have higher liability limits because larger vehicles like delivery vans are deemed to cause more damage than ordinary passenger cars.
- Does your personal policy state that it will cover you when you encounter an issue related to your business? Normally, it will not. If you file claims for an accident that happened while doing official tasks and deny that information, it may be labeled as a fraudulent claim.
- Are your employees and staff driving your vehicle during business hours? If so, you definitely need business car insurance.
There are independent agents who will be glad to help and offer valuable pieces of advice. Yes, there are agents who specialize in this field and they can help complete a package that could work well with your needs. These independent agents can provide objective advice because they are not in any way tied up with one particular insurance company. The coverage options they offer are more flexible and composed of a combination of policies from different insurers. If you are not sure about consulting an independent agent, search the internet because it is swimming in information that you can use. Just make sure you are dealing with a legitimate website before signing anything and looking for an agent in your area. When still in doubt, seek referrals from your network of businessmen or professional organizations. Most likely, they have come across a reputable agent that they have already worked with in the past.