As a business owner, the lines of business use and personal use of your vehicle can get blurred. Whether you own a single delivery van or a fleet of trucks, making sure that you have the proper insurance is very important. A lot of small business owners are not covering their business auto insurance correctly.

What Is Commercial Auto Insurance?

Commercial auto insurance provides coverage for vehicles used in the course of your business. This type of policy is specifically designed to cover the unique risks that come with using vehicles for work purposes, including liability, physical damage, and medical payments. It’s different from personal auto insurance, which typically does not cover vehicles used for business activities.

When Should You Purchase Commercial Auto Insurance?

1. If You Use Your Vehicle for Business Purposes: If your vehicle is primarily used for business activities, such as making deliveries, transporting clients or employees, or carrying equipment, you’ll need commercial auto insurance. Personal auto insurance often excludes coverage for vehicles used for business purposes, leaving you exposed to significant risks.
2. If You Own a Business Vehicle: If your business owns or leases vehicles in its name, you are required to have commercial auto insurance. This includes everything from cars and vans to trucks and trailers. Commercial auto insurance will protect your business assets in case of an accident or other incident involving one of your vehicles.
3. If Employees Drive Your Vehicle: If you have employees who drive your vehicle as part of their job, you need commercial auto insurance. This coverage will protect you if an employee is involved in an accident while driving your vehicle for work purposes.
4. If You Transport Goods or People for a Fee: Businesses that transport goods or passengers for a fee, such as delivery services or ride-sharing companies, must have commercial auto insurance. This ensures that you’re covered in case of an accident while providing these services.
5. If Your Vehicle Is Equipped for Work Purposes: If your vehicle has been modified or equipped with special tools, equipment, or machinery for business use, commercial auto insurance is necessary. These modifications are typically not covered under a personal auto insurance policy.

What Are the Benefits of Commercial Auto Insurance?

• Liability Protection: Covers legal expenses, medical costs, and damages if you are involved in an accident where someone else is injured, if your business is found liable in an accident.
• Physical Damage Coverage: Protects your business vehicles against damage from accidents, theft, vandalism, and natural disasters. This is the same comprehensive and collision coverage on your personal car insurance policy.
• Medical Payments Coverage: Helps cover medical expenses for you and your passengers after an accident.
• Uninsured/Underinsured Motorist Coverage: Protects your business if one of your vehicles is involved in an accident with a driver who doesn’t have car insurance or doesn’t have enough car insurance.

Conclusion

Purchasing commercial auto insurance is important to keep your business properly protected. If you use vehicles for any business purpose, you should consider commercial auto insurance and consult with your insurance agent. At Ameriguard Insurance, we can help you find the right commercial auto insurance policy that fits your needs and budget. Contact us today to learn more.