Do You Need Business Car Insurance?

Lots of small business people, especially those who base their business from a home office, rely on their own car insurance to cover a vehicle that gets used to do business. This may have been alirght when the business was very small. But as that enterprise grew, took on more inventory and supplies, hired employees, and started to pick up passengers, this may be a big mistake.

Indeed, as the businesses grow, they do start moving inventory, carrying supplies, and allowing employees to drive the business owner’s car.

If you are concerned about the use of your personal vehicle for business, it would be a good idea to inspect your own personal policy. You should also speak with a qualified insurance agent. It would be awful to lose your business because of poor business vehicle coverage.

Mileage limits could be too low. If you covered your car when you just use to use it to shop for groceries or ferry kids to soccer games you may be exceeding the mileage estimates you declared when you filled out your initial application.

If you let your workers take the car on errands, or if you expect them to use their own personal vehicles, it is a good time to consider commercial vehicle insurance.

And while you should consider vehicle damage, both to yours and other people’s cars, you also need to be concerned about medical liability. If you, your employee, or another person, is injured, damages can really start to add up fast. Does your business pick up passengers? Personal injury suits are common these days, and you do not want to lose your company over one.

What do you carry in your car? If you transport inventory or supplies, you are risking loss through damage or theft if they are not properly covered. Many small businesses really cannot afford to replace these items. Proper business car insurance can minimize risk in case of an accident or theft.

Be aware that the lack of proper business vehicle coverage can put your own business at risk.

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