Commercial auto insurance is designed to provide liability, physical damage and other optional coverages to protect a business from loss while a vehicle is being operated for business purposes. It is sometimes easy to confuse personal auto insurance with a commercial policy. Let's take a look at some common commercial auto insurance misunderstandings.
Even If You're Self-Employed, You Need Commercial Auto Insurance
If you deliver pizzas, your personal auto policy may not cover you while you're using your personal vehicle for business purposes. You need to check your policy. Some auto insurance provides limited coverage for business use, but more than likely you’ll need a commercial auto policy.
Keep Your Commercial Insurance in Force Even if Business is Seasonal
Many seasonal businesses cancel their commercial auto insurance during slow periods. There are two reasons not to follow this practice. First, by keeping your policy in force, your premium will probably be lower than canceling it and starting over later. Second, if you cancel your policy, you will have absolutely no coverage on your stored vehicles. You should consider a comprehensive-only policy to protect your business vehicles against theft, vandalism or fire during excessive periods of downtime.
Your Employees May Not Be Covered Under Your Commercial Auto Policy
Just because someone works for you, it may not mean that they have the right to drive your company vehicles. Some insurance companies require that any drivers of commercial vehicles be individually named in the policy. Your policy may contain a "permissive use" provision that will allow your employees to drive your vehicles as long as they have your permission. If you don't understand your policy, check with your agent.
Equipment and Tools May Not Be Covered
Normally, equipment permanently attached to the vehicle will be covered. Loose tools, toolboxes, equipment and supplies will usually not be covered unless you have added specific coverage for items in transit.
A Home Business May Need Commercial Auto Insurance
The insurance company really doesn't care where your business operations are based. If you operate your personal vehicle for business-related reasons, your personal auto policy will not cover losses resulting from business use. The only exception here is when your insurance company adds business use coverage to your policy. If this additional coverage isn't available, you need to buy a commercial auto policy.
Some try to ignore commercial auto insurance and others just don't understand why they need it. As a business owner you must do everything you can to protect business assets. If you use a vehicle for business, that's commercial use and a commercial policy will eliminate any doubt as to whether or not you are properly protected from a potential loss.
Protect your business’ fleet. Call Clarksville Insurance Agency at 931-431-4551 for more information on Clarksville commercial auto insurance.