Commercial auto insurance covers property damage and liability that are ordinarily excluded from personal auto insurance policies. Different liabilities and risks arise with the use of commercial vehicles, so the insurance policies that cover them are written and rated differently. The question of whether you’re going to need commercial insurance depends primarily on how you use your auto. Then you need to look to who you have it insured with and check your policy’s commercial use exclusions.
Do I need commercial auto coverage?
If you own a business, you’ll need the same type of coverage that you would want on a personal auto insurance policy. If your plates, tags or registration are commercial, you’ll want a commercial policy. If you’re transporting people or goods for a charge, or you’re involved in a providing a service, you’re likely to need commercial coverage. You can get commercial insurance for just one auto or a fleet of them. Different coverage is optional, That coverage might include but isn’t limited to:
Uninsured and underinsured motorist coverage
Medical payments or PIP coverage
Don’t place your business and personal assets at risk
Many businesses even purchase a commercial umbrella policy in the event of very large liability claims. If like many business owners, your car is owned or leased by the business, be sure that your business is principally insured under the policy. Every business is different. Custom commercial auto insurance is available to met specific needs.
Remember that personal auto policies have specific coverage exemptions for commercial use. Don’t place both yourself and your business at the risk of financial disaster with the wrong insurance. If you’re riding on a personal policy, and you’re not sure if business use of your auto is covered, call your agent or insurer. They can guide you.