If you are a business owner, you may be contemplating whether you need to purchase a commercial auto insurance policy. Perhaps you hired a new employee who will be making deliveries for your company. Maybe you bought a new vehicle for the business. No matter why you’re considering a commercial auto policy, you need to be able to understand why it could be a better choice than a personal policy.
Commercial insurance covers many of the same items that personal insurance covers. Commercial policies cover the following:
- Uninsured/underinsured motorist
- Medical payments
- Personal injury payments
- Roadside assistance
- Rental reimbursement
The differences between commercial and personal auto insurance lie in coverage limits, the type of businesses covered, and the people who drive the your business’ vehicle or vehicles.
Personal auto insurance is only allowable if the following three conditions are met:
- You can obtain sufficient coverage limits.
- None of your employees, except domestic ones, such as your spouse or other family members, will be driving the vehicle.
- Your business is classified as a sole proprietorship.
Commercial auto insurance, on the other hand, provides more protection for you, your employees, and your business. A commercial policy is in your best interest if:
- You require coverage for other types of business ownership classifications, including partnerships and corporations.
- You need to protect any and all employees allowed to drive a company vehicle.
- You require higher coverage limits than those offered through a personal policy.
- You need coverage for pick-up and delivery of goods or people.
If you’re still not sure which type of insurance is right for you and your business, call Flor & Associates Insurance Agency. We’ll discuss the differences between the two types of insurance with you in further detail. We’ll then help you determine which insurance best fits your business’ needs.