Business Automobile vs. Personal Automobile Coverage
by Mike Compton
For small businesses, the line between what is considered a personal vehicle and a commercial vehicle is often not clear. At times small business owners, and even their employees, will utilize their personal vehicles for business purposes. For example, they might use their own car to travel to job sites, transport equipment, or deliver goods.
Many personal auto insurance policies will exclude business use. What that means is that the operator of the vehicle is not covered if they get into an accident while driving for work with the exception of their commute. As an example: you own a photography business, and only have personal automobile insurance. You are out making a delivery of prints to a client, get into an accident, the car is wrecked and prints are ruined. The claim on your automobile may be denied on your personal automobile policy based on the coverage you have. Having to pay the repairs for your car out of your own pocket could be quite costly.
Take a moment to examine the use of your vehicles. If you are regularly transporting people or goods, making deliveries or towing trailers as a part of your business operations, you would need a business auto policy to have adequate protection. Additionally, you always need a business automobile policy if you want to cover vehicles owned by the company, regardless of how you use them.