Do You Need Commercial Auto Insurance? A Quick Checklist
Figuring out what kind of vehicle insurance your business needs can be confusing. Many business owners assume their personal auto policy is enough, but that assumption can lead to costly coverage gaps. If you use a vehicle for any work-related purpose, you likely need commercial auto insurance from Insurance Company Dublin Ohio to fully protect your company. This quick checklist will help you determine if your business activities require a commercial policy.
Evaluating How You Use Your Vehicles
The primary factor that determines your need for commercial coverage is how you use your vehicles. Insurance companies draw a clear line between personal and business use. Answering a few simple questions about your daily operations can quickly clarify which side of that line you fall on.
Who Drives for Your Business?
Think about who gets behind the wheel for your company. If your business owns, leases, or rents vehicles that employees drive, you need a commercial policy. The same applies if you have employees who use their personal vehicles to perform work duties, like making deliveries, visiting clients, or running errands for the company. A commercial policy can provide coverage for “non-owned” vehicles, protecting your business from liability if an employee has an accident while on the clock.
What Is the Vehicle Used For?
Consider the primary function of your vehicle. Do you use it to transport goods, tools, or equipment? Do you haul materials to and from a job site? If your vehicle is essential for your trade, such as a contractor’s truck, a delivery van, or a food truck, a commercial policy is necessary. These activities create risks that personal auto policies are not designed to cover, from protecting expensive equipment stored in the vehicle to covering the higher liability risks associated with being on the road for work.