If you are a small business owner or home business owner, you may be thinking about applying for a business car insurance. Some entrepreneurs may think that there is no need to apply for business insurance since they can use their personal car for business at the same time. However, there are some differences between personal and business auto insurance. There are also certain advantages to getting a company insurance coverage for the vehicles that you use for your business.
Vehicles for company use are often more at risk to damages and accidents. This is especially true if you have driver employees who work for you. Some employees may not have much concern in caring for the vehicle as much as you. Since they are not the owner of the car, they may not take good care of it like you would, especially when driving for long distances.
A comprehensive business car insurance policy should cover other things aside from the vehicle itself. For instance, if the car is used for the delivery of your stocks or customer orders, these items can be covered by your policy. Unlike a personal policy, business car insurance can give you more protection.
When looking for insurance companies that offer business insurance policies; conduct research and compare just as you would in choosing a personal insurance company. Make sure that the company is financially stable and enjoys a good reputation in the industry. It would be best to ask other company owners in your local community for possible recommendations. Look for established business owners who have been insuring their cars for a long time.
Check the standard rating of an insurance company as well. These ratings can be given by Better Business Bureau and other recognized business organizations in your area. A rating of A++ should give you confidence in the insurance company’s capability to provide excellent service. Meanwhile, a rating of B- and below may indicate issues or problems about the insurance company’s service. An F means the insurance company is in liquidation while an S rating stands for suspension.
If you are a new entrepreneur who is not familiar with business insurance matters, it would be best to seek professional advice from a business attorney. Take note that there are certain State laws that you need to be aware of before signing up for a business car insurance. Your business attorney can explain these laws and can ensure that the terms in your business auto insurance policy are fair and legal.