You operate your own startup business from your home office or garage. Over the past year, you have experienced great success and are starting to struggle to keep up with orders. Whether you are crafting furniture, producing a delicious line of jellies, or providing consulting services for professionals downtown, you need a vehicle to get work done. Should you just keep using your standard auto insurance, or should you be looking at a commercial auto policy?
Loaning Your Personal Vehicle for Company Purposes Comes with Risks
If you are in the habit of giving your admin your keys to run some plans across town, then you could be at risk. Even by simply filling up the SUV with products for the craft fair, you could be putting more than your bumpers at risk. Should the vehicle be involved in an accident while on company time, the other party may see you as a potential deep-pocket waiting to be picked. Your personal auto insurance will take care of a few bumps and bruises, but it may not stand up to a major liability claim.
Commercial Auto Extends Protections to Your Employees and Your Accounts
A commercial auto insurance policy is associated with your business, not your personal driving record. It comes with higher maximum payouts per incident, as it serves to protect the capital of your company. The other party is more likely to be satisfied with the insurance settlement in case your driver was at fault. Also, you would be able to get the truck or car repaired no matter who was sitting behind the wheel.
The commercial policy can also provide replacement costs for lost inventory or tools that may be damaged in a collision or fire. You can select how much to add to the replacement cost of the vehicle to include supplies and tools that are often stored in the car. It simply works harder to protect your ability to operate.
Consider Investing in a Dedicated Vehicle for Deliveries and Errands
If your personal vehicle is spending the entire day running errands for the business while you are behind your desk, you will also want to invest in a dedicated vehicle for the company business. That will further eliminate any confusion regarding liability while you are on your morning commute. It can also help you to continue to grow the business as you enjoy greater freedom for scheduling and meeting delivery demands.
Work with Your Insurance Agent to Create the Right Policy
As with any type of business insurance, your commercial auto policy is tailored to your specific type of business, how the vehicle is used, and how often it is on the streets. Give the professionals at InsuranceHub a click or call to learn more about how commercial auto works and find the policy just right for your home business.