Everyone understands that personal automobiles must be insured to protect your family and your property. It is also required by law in most states. What can be more confusing, however, is deciding if the vehicle you are driving for your business should be insured with a commercial auto policy that will provide you with the proper property and liability coverage in the event of a loss or an accident. The following will help you to determine what type of insurance coverage you need on your vehicles:
• If the vehicle is registered to a business, it may need to be covered by a commercial auto insurance policy.
• Driving to and from your place of employment is considered commuting and covered under your personal automobile policy. If you use the vehicle to carry or tow equipment such as ladders and tools, deliver goods, tow other vehicles, as a taxi, to deliver messages, newspapers or carry hazardous materials, you may need a commercial auto policy.
• Examples of commonly insured commercial vehicles are buses, box trucks, flat bed trucks, catering trucks, ice cream or refrigerated trucks, wheelchair vans, limousines, taxis, tow trucks, hearses, cement mixers and passenger vans.
• A commercial auto policy may be appropriate if you need higher limits of liability because of the nature of your work.
• Commercial auto policies offer special coverages you may need for conducting your business that are not available from a personal auto policy. These include hired and non-owned auto coverage and coverage for towing a trailer for business use.
These are just some tips to help you determine how to properly insure any vehicles you use for business purposes. While the major coverages are the same, a business auto policy differs from a personal auto policy in many technical aspects. It is important to speak with your independent insurance agent at Berkely Brokerage Corp. about insuring the vehicles that you use for your business. We will be able to ask the right questions to help determine if you are better served by having a commercial auto policy.