When Do You Need a Business Auto Policy?

There are over 31 million small businesses in the United States. But not all of them require a business auto policy.

Most business owners know they need some type of commercial insurance. However, many don’t realize their personal vehicle insurance may not cover them when driving for work. That’s why it’s essential to understand the difference between personal and commercial auto policies – and when you need each.

If you’re unsure what type of policy you need, this article’s for you. We’ll explore the top scenarios that require commercial vehicle insurance, along with a few tips for keeping costs down.

Read on to learn all about car insurance for business vehicles.

When Do You Need a Business Auto Policy?

When do you need a business auto policy? The answer may surprise you.

There are several scenarios in which you would need a commercial auto policy. Let’s take a closer look at some of them, including niche industry scenarios.

If you own a taxi or limo service, you need a particular type of commercial auto policy. Since there are passengers, it’ll need to provide broader coverage than a standard commercial auto policy.

Do you use vehicles for hire (such as car-sharing services like Uber or Lyft)? Then you need a transportation network company (TNC) endorsement on your business policy. This provides coverage for passengers and third-party property damage.

You need a business policy if you use your vehicle for any business purpose or lend it to employees for work-related purposes. Without one, you could risk a lot of money if an accident occurs.

Here’s a refresher on how liability works, always have the bigger picture in mind. It’s not just about protecting yourself; insurance is about securing your entire company’s assets.

Requesting Commercial Vehicle Insurance Quotes

When you realize you qualify for a commercial auto policy, it’s time to start shopping for one. But before you start getting quotes, there are a few mistakes you’ll want to avoid.

First, don’t assume that all insurers offer business auto coverage. While most do, there are a few that don’t. So, check with each insurer you’re considering to see if they offer this type of coverage.

Second, don’t just go with the first quote you receive. Just like with any other type of insurance, it’s essential to compare quotes from multiple insurers before making a decision. This way, you can be sure you’re getting the best deal possible.

Finally, don’t forget to read the fine print. When comparing quotes, pay close attention to the coverage limits and exclusions. This way, you’ll know exactly what’s covered (and what isn’t) by each policy.

This is a lot of work, and it may be confusing if you are unsure what coverage you need. You can reach out to us, and we can do this work for you.

Secure Your Policy

Now you know a commercial auto can protect your company from lawsuits if you’re involved in an accident while driving for work. It can also help cover the damages to your commercial vehicles, medical expenses, and more. An active policy secures your company, and not having one puts everything at risk.

If you’re using vehicles for business purposes, let us help you get the right type of coverage with the best rates. We’ll be happy to answer all of your questions and provide you with a free quote for a business auto policy.