When you own a business that depends on several vehicles to get things done, you need proper auto insurance for all of these vehicles. However, when vehicles operate for the purpose of business, there is more than one way to cover them. Choosing the right policies and the right amount of coverage can get a little overwhelming, but your insurance agent can help. Here is what you need to know to get started.
Vehicles for Business Use Only
Insurance that covers business vehicles "for business use only" covers your vehicles while they are in use for business. If your own car breaks down and you choose to drive a work vehicle home, that vehicle is no longer covered because it is not conducting business and is being used as a personal vehicle. If you were to get into an accident on the way home while using a business vehicle for personal purposes, this insurance would not cover that accident or any damages that ensue.
Adding Personal Insurance to Business Auto Insurance
If you purchase both personal auto insurance and business auto insurance policies for all of your business vehicles, then you are covered against any accident where the vehicle is in use. Your insurance agent can help you select complementing policies that cover you and your vehicles under these circumstances. It is most beneficial to you and your employees if each employee is required to take a vehicle home in order to be ready and on time for work the next day.
In addition to personal auto insurance and business auto insurance, you need to get a business insurance policy to protect your business. If your employee gets into an accident with someone else and that other driver wants to sue your company, your business insurance covers the issues you have with being sued. It may also cover some of the damages to your business vehicle that are not otherwise covered by personal auto insurance and/or business auto insurance.
Finally, an umbrella policy for commercial purposes may be available. These auto insurance policies cover all of the remaining items or issues that could occur with your business vehicles in the event of an accident or some bizarre circumstance (e.g., engine bursts into flames while vehicle is in park on your business lot). While you do not have to buy an umbrella policy for your business, it is something to look into and consider if you want extra coverage.