Do I buy a Personal or Commercial Auto policy?

Everyone agrees that selecting the appropriate tool for a job is the difference between success and failure in any profession. So why should it be any different when managing the risk associated with your commercial insurance policies. While price should always be considered, having the appropriate coverage (tools) can also mean the difference between staying in business or folding up shop because you are under or not even insured. Having the proper coverage for you, your business, and your employees could give you the needed protection in the unfortunate event that one of your vehicles is involved in an accident.

So, if you own a business and you or your employees use a vehicle for any business-related activities, you may need a commercial auto insurance policy that’s tailored to more closely suit the needs of your business instead of just a personal auto policy. Sit with an independent insurance agent to determine your exposures and solutions.

Asking yourself the four questions below will help you determine if you might need a commercial auto policy instead of a personal auto policy:

1) Do you need higher liability limits than your personal auto policy (PAP) provides? Most of the time, commercial auto policies provide significant higher limits of liability, but may be lacking in areas that are not associated with commercial auto risks.

2) Do you need any special coverages while conducting business? Commercial auto policies usually offer additional coverages not found in the PAP—such as hired and non-owned auto or coverage for towing a trailer that is used for business

3) Do you need to list any employees as drivers? This is a big difference, and this is easily done with a commercial auto insurance policy.

4) Do you use your vehicle for business purposes? If you use your vehicle in the course of doing business, you might need a commercial auto policy.

Making good and informed decisions about your insurance needs will help you manage all of your risks, and allow you to sleep better at night. Make sure you consult an independent insurance agent before engaging in a new business or taking on new roles as a business. They represent multiple carriers and can help you find the right commercial policies that will fit not only your business, but your budget as well

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