Automobile drivers are legally responsible for obtaining auto insurance. There are different types of policies for automobile owners. In the least, a policy should offer protection against theft and accident. Business owners need insurance for business vehicles as well. A business that owns a fleet of trucks or a company car should have commercial auto insurance. A personal auto insurance policy does not cover a business automobile, so special insurance is necessary.
Some business owners think they do not need business auto insurance. This is because they believe their personal automobile insurance is enough. However, that is usually not adequate to cover a business vehicle. When it comes to a business, the auto policy has to cover anyone who drives the vehicle. An individual’s personal policy will not offer protection for the business.
There are different reasons why a person will require commercial auto insurance. It depends heavily on the kind of business they own. If a company is involved in transport, such as a delivery service, then insurance is a smart idea. Some states require such businesses to have insurance. A business that transports people, such as a taxi service, needs commercial auto insurance as well. These are only two examples of a type of business that should have commercial auto insurance.
Any business that uses a car for business reasons should consider coverage. An automobile driven by an employee for daily work is also a business vehicle. Even if it is just one car, the driver still needs coverage. Without commercial auto coverage, the business is liable if the employee has an accident. It does not matter if the business owns a fleet of trucks or one small vehicle. Commercial auto coverage is a smart move for any business that requires the use of an automobile.
Another reason why this coverage is a good idea is frequency of use. An accident is more likely to occur the more an automobile is on the road. Operating a business vehicle without insurance is taking a risk.
Contact your local insurance company for information about commercial automobile insurance. An insurance agent can inform you of the best policy for your business.