A lot of today’s enterprises do not really grasp the need to take out business car insurance policies. In fact, most of these outfits do not really think such policies are indeed as important as people claim them to be. The fact of the matter is, as long as you operate a business vehicle, whether this be a plain car or a huge commercial truck, there will always be the risk of vehicular accidents. After all, accidents, by definition, are unfortunate and unaccepted events that can happen to just about anyone. Thus, if you are operating a service vehicle for your business, then you need to protect not just yourself as an entrepreneur, but also your own enterprise.
What exactly is business car insurance and what distinguishes it from personal car insurance? The main distinction here is that the business type takes effect only when the vehicle is being operated for official purposes. This means if you are using the car to run personal errands and you collide with another car, then you are not covered by the policy. Even the boss or owner of the business would not be covered if he or she used the car for personal purposes. Thus, be sure to use the vehicle only for business purposes, or you would have to shell out the costs for repairs and other expenses out of your own pocket.
Another restriction that is still related to vehicle usage is the mileage restriction. Due to restricted mileage, car usage would still be limited to business purposes.
Who then needs business car insurance? If you are just self-employed and you operate a business or work from home, then you would not really need this type of insurance. For the most part, the people who would benefit from these packages would be sales executives, construction workers, and other workers who need to travel during a typical workday. However, do not think that just because you need to make bank deposits occasionally, you are already qualified for this type of insurance. If you are not sure whether you do qualify, then contact an insurance agent so that he or she can determine this for you.
The typical business car insurance package covers just about everything that personal insurance packages cover. These include property damage, bodily injury, and the like. Bodily injury, in particular, does not cover just the employee driving the car. Other victims of the crash would also be covered by the policy, which, in itself, is a huge benefit already.