If you own a business, you likely put a lot of effort into serving your customers to their satisfaction. Depending on the type of business, this might include spending a lot of time on the road delivering your services. If you drive during the course of business operations, you need the right auto insurance to protect your business.
We all understand why we need auto insurance on our personal vehicles. It is required by law in New York and it protects your loved ones and property if an accident should occur. Business auto or commercial auto insurance is an entirely different matter. There are certain types of vehicles that are not covered on a personal auto policy. If you own a business and use a vehicle solely for the business, then you need a business auto policy. If your vehicle has commercial tags, it should be insured on a commercial auto policy.
When it comes to fully protecting your business, do not overlook the importance of investing in business auto insurance. If you operate a vehicle in any capacity as part of your business, you need to have this type of insurance policy in place.
You May Need A Business Auto Policy If:
- You are using your vehicle to transport good or people for a fee
- You use your vehicle to conduct a service
- You need higher limits of liability because of the nature of your work
- You are hauling a considerable weight in tools or equipment or towing a trailer used to conduct your business
- Employees operate the vehicle or if ownership is in the name of a corporation or partnership
What is Business Auto Insurance?
Business auto insurance protects vehicles used primarily used for business purposes. This coverage might extend to company-owned vehicles or certain vehicle service businesses, such as taxis. Business auto policies differ in many ways from personal auto policies. They come with optimized coverage that help meet the needs of business owners.
Business owners have needs that differ from those of the average driver. These might include an increase of financial damage in the event of an accident. Business auto insurance is better at catering to these concerns for businesses than what personal auto insurance can provide. Many business uses and vehicle types are excluded from a personal auto policy, so be sure you have the right coverage.
Who Needs Business Auto Insurance?
If you use a vehicle regularly for commercial uses, you most likely will need business auto insurance. Before you get a policy, you should examine your business, and the roles that vehicles and drivers play in it. Often, business owners are the primary policyholders for business auto policies. When it comes time to buy business auto insurance, the owners should insure all known vehicle risks. Owners should take stock of vehicle ownership. Even if business owners use their personal vehicles for business purposes, this usage may trigger the need for commercial coverage.
Employees play an important role in business auto insurance coverage. Every employee who drives a business vehicle should be covered under a business auto insurance policy. Each driver should be listed on a single policy. If an employee uses a personal vehicle for business, they usually need business auto insurance coverage. An example is a employee who travels as a consultant. However, employees may not universally need business auto coverage for their personal vehicles, such as an employee who runs a single errand or makes a single delivery.
Self-employed people have to consider the benefits of business auto insurance. They might not use their personal vehicles enough to warrant a business auto policy. An example would be a self-employed person who occasionally drives to business meetings may not need this coverage. For other self-employed persons, such as a independent realtor who travels long distances for work, may need a business auto policy.
Work with us at Pepe Insurance to help you get the business auto coverage that your business needs. Since every business and driver will need specialized coverage, it is best to work with a professional agency such as us who can get you the correct policy.
Dutchess County NY residents, at Pepe Insurance Agency, we work with you to make sure you have the coverage you need, while delivering it at the best price. Give us a call at (845) 724-3031 or fill out our Contact Us form to get in touch with an agent. We want to make sure you meet your insurance goals and protect what is most important to you!
Written by Pepe Insurance Agency