There are many types of car insurance policies on the market, one of which is commercial auto insurance. This is coverage designed for businesses that operate vehicles, rather than private drivers. However, the definition of what is a business has substantially expanded over the years to include more than just brick-and-mortar operations. These days, countless people drive various cars on official business duties all the time. As a result, vehicles that qualify as commercial vary considerably.
To determine if you must buy a commercial auto insurance policy, ask yourself about the type of vehicle you drive and who the owner is. These are often the factors that decide the question.
Vehicles that often qualify for this coverage include:
1. Vehicles that often qualify for this coverage include:
If your business buys a single vehicle or a fleet of automobiles, then the business is the owner of the automobile, and it must insure itself appropriately against the liabilities of ownership. Commercial auto insurance is the policy that will allow you to do so, and can often provide liability, physical damage, uninsured motorist and other coverage.
Please note, if you provide a company vehicle to your employees to use both at work and in their personal time, the business still assumes liability for the vehicle even during the driver’s off-hours. Therefore, the requirement to have commercial auto insurance will still apply.
2. Personal Automobiles
A small business owner, or someone who drives their own vehicle frequently on work duties might often need commercial auto insurance. Though you might have personal car insurance, your liability coverage often will not apply to the business. Therefore, your business will need its own liability coverage to receive the appropriate coverage.
To get this coverage, you will often be able to buy hired/non-owned auto liability insurance. It insures the business even though drivers use their personal vehicle in the line of business.
Keep in mind, if you drive for a rideshare, then your insurance needs might be a bit different. Many insurers now offer specific rideshare policies that always integrate with your personal coverage to protect you.
3. Rented or Hired Vehicles
A hired/non-owned auto liability policy can also apply if your business operates vehicles only in certain circumstances. For example, if you hire vehicles for certain special events, such as moving, then you can also benefit from these policies.
4. Privately Driven Large Cars
Some vehicles are so large and heavy that they qualify as commercial vehicles even when someone drives them strictly for personal use. As a result, states often require drivers with such vehicles to register them as commercial. Once the vehicle receives this designation, it will likely have to carry commercial auto insurance.
If you have questions about your qualifications or needs for commercial auto insurance, we’re happy to work with you. We will ensure that you receive a benefit that is in your best interest.
Also Read: What Does Commercial Auto Insurance Cover?