The 411 on Commercial Car Insurance
Should you utilize a vehicle or vehicles in the operation of your business or your employer’s, it is necessary, and certainly a good idea, to purchase good commercial car insurance. The kinds of vehicles that generally typify this include cars (either individual or as a part of a fleet), limousines, vans and delivery trucks, dump trucks and semis and taxi cars, to name a few.
Regardless of whether one of these vehicles is leased or fully owned, whether a single car is driven for business purposes or an entire fleet, you will need to purchase commercial car insurance. State laws mandate businesses to have commercial auto insurance and, it is important to note, the normal Business Owners Policy (or “BOP”) will not provide coverage for vehicles used by a business.
Any vehicle that is used for snowplowing, or that carries toilet facilities, or is used for catering food services and so on, are also mandated to carry this insurance. Keep in mind that if you frequently transport clients or customers it will also likely be needed.
Commercial insurance is not too different from other auto insurance. For example, a driver must have liability coverage, only at a more lofty coverage level. There are also a myriad of add-ons (known as “riders”) that specifically geared to businesses. These riders can be purchased to cover employees, protect equipment and loading and unloading of said equipment. One can even protect business assets with this extra added coverage. One is wise to also purchase comprehensive and collision coverage, medical coverage (for personal injury), underinsured and uninsured motorists protection and perhaps other coverage available through riders that are designed for specific industries.
Coverage comes in the following formats: Coverage for vehicles owned by the business, cars owned or leased by a business and all cars used by the business regardless of ownership or who leased or hired them.
If you have a car that is only used on occasion for business purposes, you might be able to obtain sporadic business use coverage. In this instance, the vehicle cannot be utilized primarily for business. On the other hand, should you be driving a car that is commercially insured only for personal reasons, you would not be covered in the event of an accident.
It is wise to check with your state about its requirements for the level and kind of insurance that is needed. At the least, one must obtain the same insurance that is generally needed for one’s personal car in the form of a commercial policy.