Much like individuals need car insurance for their personal vehicles, business owners need insurance for the vehicles they use to operate their business. How much coverage a business owner needs depends on how many vehicles they use for their business. How they use those vehicles also affects coverage.
Personal Auto Policy vs Business Auto Policy
Some may wonder if their personal auto policy provides enough coverage to avoid purchasing a business auto policy as well. Personal auto policies do cover some business use of vehicles. However, if the business owner or employee use the vehicle predominantly for business, a personal auto policy will not provide enough coverage. Personal umbrella policies are insufficient as well as they do not cover claims related to business activities.
What Should a Business Auto Policy Cover?
Coverage can be simple, covering only vehicles a business owns. It can also be complex, covering all vehicles owned by a business as well as the vehicles a business uses but does not own, lease, or hire. It is best to obtain the latter to ensure full coverage. The more complex option covers the business in the event that an employee files an accident claim for using their personal vehicle while conducting business. Business owners should ensure their policy covers collision, comprehensive, and specific perils.
Business owners have a lot to consider when it comes to what types insurance they need and how much coverage they should buy. If your business uses vehicles to conduct operations on a regular basis, you need a Business Auto Policy. To determine how much coverage your business needs, contact the experts at Leverity Insurance Solutions today.