Do I Need Commercial Auto Insurance? Jobs that Require It

Getting personal auto insurance is a no-brainer, mainly because it’s mandated in most states. But, when it comes to your business it’s more difficult to draw the line. Do I need commercial auto insurance? Or is a personal policy sufficient?

Certain types of auto usage are not covered by personal vehicle insurance and, in this article, we will go over the aspects you need to take into account to consider whether your business needs commercial auto insurance or not.

Generally speaking, if a vehicle is used for your business in any tasks other than to commute from home to your workplace, you will need to be covered.

What are some tasks that may require commercial auto insurance?

  • Driving to your clients’ sites
  • Carrying equipment or hazardous materials
  • Towing for hire
  • Delivery of goods and/or people for a fee (including but not limited to food delivery, flowers, wholesale or retail)
  • Taxi driver or chauffeur

There are also some businesses that may not need commercial auto insurance:

  • If you have a side business and work part-time as a Mary Kay or Herbal Life sales rep but do not exceed 100 miles/day or 500 miles/week.
  • If you’re a consultant, real estate agent, lawyer, accountant, doctor or clergy who carries clients you may do so under personal auto insurance.

If you’re still in doubt about whether you need commercial auto insurance for your vehicle, it’s always advisable to speak to an agent, as they will provide all the information you need.

Once established that your business does need a commercial vehicle policy, there are some benefits you can take advantage of right away:

Protect yourself and your business

Whenever you’re driving your vehicle for business purposes, you, your vehicle, passengers/employees and any other cars involved in an accident would be covered. If anyone was injured or died in the collision, the liability for that could fall to your business. With commercial auto insurance, your business remains protected.

Your equipment will also be protected

Another interesting benefit to take advantage of. Whether you’re a plumber or have a catering business, with a commercial vehicle policy, your insurance company will most likely provide partial funds to replace your tools.

Rented or leased auto protection

If there’s a collision when driving a rented or leased vehicle, your commercial auto insurance will cover the resulting damage as well as contractual obligations to the leasing company.

Coverage for totaled vehicle

In the event that your vehicle is totaled in an accident and there are still outstanding funds on your leased car, your commercial auto policy will cover the difference.

Separation of business and individual policies

Something that is often overlooked and yet important, is that your insurance company will separate personal insurance liability from that of the business.

Whether you’re self-employed or have a small business with employees, having commercial auto insurance can bring several benefits to you and your company.

If you’re still not sure about getting a commercial vehicle policy or not, speak to one of our friendly agents today and they will provide all the information needed to determine whether you need this type of insurance or not. 

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