Do I need a commercial auto insurance policy? PDF Print E-mail

As a business owner, you need the same kind of insurance coverages for the auto you use in your business as you do for a auto used for personal travel -- liability, collision and comprehensive, medical payments/personal injury along with coverage for uninsured/underinsured motorists coverage. Many business people use the same vehicle for both business and pleasure, but if the vehicle is owned by the business, make sure the name of the business appears on the policy as the "principal insured" instead of your name. This will avoid possible confusion in the event that you need to file a claim or a claim is filed against you.

The type of driving you do will determine whether you need to buy a business auto insurance policy. A good insurance agent will ask you many details about how you use vehicles in your business, who will be driving them, and whether employees are likely to be driving their own cars for your business.

While the major coverages are the same, a business auto policy differs from a personal auto policy in many technical respects. Ask your insurance agent to explain all the differences and options.

If you have a personal umbrella liability policy, there's generally an exclusion for business-related liability. Make sure you have sufficient auto liability coverage.


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