If you run a business, with or without employees, that requires driving your personal vehicle, we highly recommend that you have a conversation with your broker about commercial auto coverage.

While a personal auto policy can provide some coverage, there are stipulations. For example: If you or your employees use a vehicle primarily for business, personal auto insurance likely won’t cover you or them. The same applies to vehicles owned by your business (even if you occasionally use that vehicle to run personal errands or pick up the kids).

Moreover, a personal auto insurance policy won’t provide enough liability coverage if someone sues you or your business after an accident. In fact, many policies actually exclude coverage if the claim was filed for an incident that occurred while driving a personal vehicle for business purposes.

How do I ensure that my commercial vehicles are protected?

We recommend that you purchase commercial auto insurance for all the vehicles that are used for business purposes, including vehicles that your business leases or rents. It’s the only sure way to protect your business against liability.

What types of commercial auto insurance coverages should I consider?

There are three types of damage coverage to discuss with your broker:

1. Collision
   Protects against losses (financial, medical costs, death, lawsuits, income) that result from a covered vehicle colliding with a car or any object, or an accident that causes a vehicle to overturn.
2. Comprehensive
   Comprehensive coverage protects against losses (financial, medical costs, death, lawsuits, income) due to flood, fire, theft, glass breakage, trees or other objects falling on your car, earthquakes, accidents involving deer, wild birds, etc.
3. Specified Perils
   Similar to comprehensive, but protects only against specified types of perils.

4 Businesses with Special Considerations

1. If you run a snow plowing business, even if it’s just to plow snow for a little extra income in the winter, there are risks involved that are not covered by a personal auto policy. A commercial auto policy will protect you in case of bodily injury and/or property damage. This is especially important if you injure someone else or damage someone’s property while operating your snowplow.
2. If you operate a home daycare and provide transportation it’s important to be aware that most personal auto policies will not cover the transportation of children. Having professional liability and accident medical insurance for your daycare is enough as it will not fully protect you in the event of a car accident.
3. If you use your personal vehicle for work, it’s not wise to rely on your personal auto insurance to protect you. People who regularly drive their own car for business use should ensure that they’re fully covered in case of an accident while driving on the job. This type of policy will protect you against injuries to other drivers, vehicle damage, and theft and vandalism.

Ensure That You’re Fully Protected If You Use Your Personal Vehicle for Business

Instead of worrying about the “what ifs”, talk to the brokers at Dawson & Keenan. They’ll ask the right questions to accurately determine what you need to be fully protected while using your own vehicle on the job. Contact us today.