When people think of commercial automobile insurance, they tend to think of large delivery trucks or an entire fleet of vehicles that is owned by a large corporation. However, even small businesses with a single vehicle that is used for business purposes may require this type of commercial insurance. Taking the time to ask yourself a few basic questions can help you to determine whether or not your small business requires a commercial auto insurance policy.
Do you use your vehicle to transport passengers?
If you use your vehicle to transport passengers or perform any type of business-related service, you will need to purchase a commercial automobile insurance policy. This type of policy will ensure that you have adequate coverage in case a passenger was to become injured while riding in your vehicle.
Do you transport equipment or other items for your business using your vehicle?
If you transport equipment for your business either inside your vehicle or in a trailer that is being towed by your vehicle, you will want to purchase commercial auto insurance. Coverage for this equipment or other business-related items is often excluded from personal insurance policies. Consequently, you could find yourself facing significant out-of-pocket expenses to replace damaged equipment in the event of an accident if you do not purchase the appropriate type of insurance policy.
Is your vehicle operated by other employees of your business?
Even if the vehicle in question is your own personal vehicle, you will need to purchase a commercial insurance policy if this vehicle is operated by other employees of your business. This includes any family members that you may employ.
Is your vehicle titled or registered in your company's name?
If your vehicle is titled or registered in your company name this vehicle will count as a commercial vehicle even if it is primarily used for personal use. This is a fact that you should keep in mind when choosing how to register your vehicle, especially if you do not have current plans to use the vehicle for business purposes.
If after asking yourself these questions you are still unsure as to whether or not your vehicle requires a personal or a commercial auto insurance policy, it is best to contact a qualified insurance agent in your area before purchasing any type of policy. This will ultimately ensure that you have adequate coverage in the event that an accident does occur.
For more information, contact a commercial automobile insurance provider.