When you build a business, there are innumerable things to get organized, including vehicles for the business and appropriate coverage for them. Don’t fall into the trap – which can happen with small business owners – of thinking that relying on the family car (and your personal car insurance) for business use is your best option.
In some cases it may make sense to keep a clear line between your business and domestic assets. Buying a vehicle, or vehicles, in the name of the business, and insuring it with a good commercial auto policy, means that you have a clear demarcation line between home and work. The vehicle becomes part of your business assets, and the risks associated with use of the vehicle become business risks, and part of your risk management strategies. Even for those who may be able to get by using their personal vehicle for business purposes, it’s important to be aware that your personal auto insurance may not cover you while you’re driving for business. It’s worth speaking to your agent about how you use the vehicle to determine how best to insure it.
A commercial auto policy works the same way as regular auto insurance. The crucial difference is that the policy is held and paid for by the business. You need to set up work policies as to the use of the vehicle – i.e. who drives it, how it’s used – so that, in the event of damage or loss of the vehicle, your claim process can be as straightforward as possible.
It’s best to discuss all your business insurance with a specialist agent. The agent can assist you with a range of coverage, including your auto insurance