Commercial Auto Insurance Policies
If you own a business that utilizes motor vehicles in its daily operations, you need commercial auto insurance. It's not sufficient to carry a personal auto insurance policy when using vehicles for commercial purposes. It's also important to carry sufficient coverage on your commercial automobiles. Here are some things you should know about insuring your business vehicles.
What It Is?
Whether transporting materials or simply being used for traveling, vehicles used for commercial purposes must carry the proper type of insurance. Like personal auto insurance, the commercial type covers aspects of vehicle ownership and operation such as liability, collision, comprehensive and uninsured motorist coverage. It's important to carry the proper type of coverage for your business needs.
Who Needs It?
All business owners whose companies use cars, trucks vans or other vehicles for commercial purposes need auto insurance specifically meant for businesses. You may be concerned that commercial insurance may be too costly; however, the real price to pay would be in penalties if you or an employee should have an accident while not carrying the proper type of insurance.
Types of Coverage
There are a number of types of commercial coverage for your work vehicles. If the primary purpose of your vehicle is not commercial and it is not a large contributor to income earned in your business, you may need "private and sporadic business use" coverage. "Private and business use" coverage provides combined coverage for anyone insured to drive the vehicle. "Commercial" coverage is needed when a private vehicle is used significantly in the course of business-related activities. There is a special type known as "non-owned auto" that is reserved for company employees driving personal vehicles on the job. It's important that you carry the proper type in order to avoid penalties.
Purchasing the right kind of insurance for your business vehicles can actually save you money. A professional insurance agent can help you to choose the specific type of insurance you need, ensuring you do not purchase unnecessary coverage. Carrying the right insurance for your business-related vehicle will also save you money and headache in the event of an accident by ensuring you do not face unnecessary penalties.
As you can see, commercial auto insurance is beneficial and necessary for business owners and those who drive their vehicle for work.
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