Many small business owners, particularly home based business owners, use their personal auto insurance policy to cover vehicles that are used for company work. In some cases it was ok when the companies were sole proprietorships, and the business owner was the only one to drive the car to an occasional meeting or client interview. Even as the businesses grew, the owner could add a business endorsement to a personal policy, which would provide adequate coverage.
Indeed, as the businesses grow, they do start moving inventory, carrying supplies, and allowing employees to drive the business owner’’s car.
If you are concerned about the use of your personal vehicle for business, it would be a good idea to inspect your own personal policy. You should also speak with a qualified insurance agent. It would be awful to lose your business because of poor business vehicle coverage.
Lots of us barely remember what we stated on our auto insurance applications because we have had the same policy for many years. But we may have understated some things, like estimated driving miles, just because our circumstance has change. If you took out your policy years ago, when you did not drive for business, you probably need to check your policy.
Are you an employer who allows your workers to take your own personal vehicle on work errands. Or do you expect them to drive their own car on company business? This situation should call for consideration of commercial insurance.
Of course, you think about damage to vehicles. Your car, and other cars, could be damaged in a wreck. But personal injury liability insurance may be a bigger issue. If you let others drive your car, or if you pick up passengers, you should be particularly concerned about commercial vehicle insurance.
Do you carry products in your vehicle. Your inventory and supplies are at risk for damage or theft. Is this covered under your personal policy. If you are not sure, you should be inspecting your policy right now. If your inventory or supplies were damaged or stolen, can your business afford to replace them? Many companies operate on a small margin. Covering these assets with an adequate policy is how a company can minimize this risk.
Be aware that the lack of proper business vehicle coverage can put your own business at risk.
If you have questions about your own personal or business insurance, consult this free directory – Find Insurance – to search for local agents.
Posted in 
Tags: