Four Things You Need To Know About Commercial Insurance For Your Vehicle

If you have a business, and you are using a personal vehicle for your business, there are a few things you may not be aware of. Often, business owners make assumptions about insurance, only to find out they have the wrong coverage when there is an accident. The following are a few things you should know.

Your personal auto insurance policy doesn't offer protection

If you are a business owner and are using your personal vehicle for your business, you should know that your personal auto insurance policy will not cover you while driving during your work hours. Insurance companies are very clear about this in a personal auto insurance policy. If you read yours, you will find that they clearly stipulate that the policy does not cover business use. It will cover getting to work and getting home, but nothing during your business hours.

Commercial auto insurance has higher liability coverage

One thing you will notice quickly about a commercial policy is that the premium will be higher, but this is due to higher liability limits. Insurance companies experience more claims when the accident involves a vehicle used for business. This is true even when it is your personal car. If you are a sole proprietor, the higher liability limits will help protect your personal assets from a lawsuit after a serious accident.

Standard commercial auto insurance will cover drivers stated in the policy

A personal insurance policy follows the car. It will cover anyone that you let borrow your car. The one exception is those who are living with you. In order for these people to drive your car, they will need to be added to the policy. With a commercial insurance policy, all employees who will be driving the vehicle will need to be added to the policy. One of the factors that will determine your premiums is how many employees will be allowed to drive the company vehicle, and what their driving records are like.

There are special policies to cover employees, using their own cars

You may have little need for a dedicated vehicle for your business. However, occasionally, you may need an employee to run an errand or two. In this situation, insurance companies offer coverage called hired and non-owned policies. This insurance will cover your business if there is an accident.

If you are using your own car for business use, you need to understand that your personal auto policy will not cover an accident. You require commercial auto insurance. You will be paying higher premiums, but this is for higher liability coverage. Any employees who will be driving this vehicle need to be added to the policy. You should also be aware that there are hired and non-owned policies for employees, using their own car for errands.

For more information on commercial auto insurance, contact a company like Rowell Insurance Agency.