Owning a business comes with a lot of challenges. It can feel difficult at times to stay on top of all the many things required when working for yourself. Since everything relies on you, you may be tempted to cut certain corners to create less hassle for yourself or even save money.
No matter the type of business you own, driving for business purposes creates a whole new field of coverage when it comes to insurance. Your current insurance policy won’t cover if your vehicle was being used for business rather than personal use.
You may be thinking commercial coverage for your vehicle isn’t a necessity. If you drive carefully and are sure to avoid accidents, there’s no reason to spend the extra money on another form of insurance coverage.
The truth is, no matter how careful you are and how much caution you take, you cannot account for everything. You may control your own vehicle, but you can’t control the actions of others or nature.
Instead of leaving things to chance, you can look into a commercial policy such as auto insurance for independent contractors. There are many add-on options available, so business owners can find a complete policy that works best for them.
Photo by Pavel Danilyuk from Pexels
Why is a business auto insurance policy important?
It’s easy to understand why someone who owns a business wouldn’t think of a business auto insurance policy. If you’re driving your personal vehicle, you already have insurance, right?
Technically, yes, your personal vehicle is insured. But that doesn’t mean the coverage extends to business use. No matter how much you try to reduce risk, accidents may still happen.
If an incident occurs while using your vehicle for business use, your personal insurance policy won’t cover your costs. Though some minor things may be covered, the majority will be an out-of-pocket expense if you don’t have commercial coverage.
There are more things than you might imagine that can go wrong while you’re driving. For example, other drivers may hit you and cause an accident; a tree branch might fall onto your vehicle; extreme rain may cause you to hydroplane and slide off the road. Countless instances may occur that are out of your control.
All the money you thought you might be saving from not purchasing a business policy could instead be going toward expenses such as repairs and medical care, which could wind up costing you much more than a policy would have.
The better choice is to simply find a commercial auto coverage that works for you and your needs. Policies are not one-size-fits-all when it comes to business. There are many options so you can perfectly tailor your policy to fit your needs.
Standard Business Auto Insurance Coverage
Commercial auto insurance begins with a base policy, which will typically cover the needs of most businesses using their vehicles for a minimal amount of time.
Collision and Comprehensive Coverage
Owning a car will always come with risks. Whether you are driving it or have it parked somewhere, there is always a chance something may happen to it. That is where collision and comprehensive coverage comes into play.
- Collision coverage – helps cover costs of accidents such as hitting an object or another driver or something hitting and causing damage to your vehicle.
- Comprehensive coverage – helps you cover costs if something happens to your vehicles, such as theft, vandalism, and natural disasters.
Bodily Injury Coverage
The worst-case scenario after an auto accident is someone being seriously injured or dying. However, it can sometimes happen.
That’s why bodily injury coverage is a crucial component of commercial auto insurance. It will cover the costs of medical bills and possibly provide legal coverage if you hit someone and cause injury or death.
Property Damage Coverage
Just as you run the risk of hitting other vehicles while driving, there is also the risk of causing damage to another person’s property. This may include homes, lawns, etc. If this happens, property damage coverage will help you pay for the cost of the damage and may provide legal coverage if needed.
Personal Injury Coverage
When involved in an accident, you have more potential injuries to worry about than those in the other car. As a result, you may find yourself or a passenger, such as a good employee, injured after an accident. Personal injury coverage will cover the medical costs for you and your passengers, regardless of who was at fault for the incident.
Uninsured Motorist Coverage
There are few worse feelings than being hit by someone, only to find out they don’t have auto coverage to pay for the damages. However, with uninsured motorist coverage, you will have peace of mind knowing that the repair costs won’t have to come out of your pocket even if that happens.
Photo by Tima Miroshnichenko from Pexels
Business Auto Insurance Add-Ons
While the standard business policy may be perfect for some, it may not be enough for others. If this is the case, you can easily look into add-ons for your coverage to better meet your business’s needs.
Add-on options can range from towing assistance to rental coverage and most needs in between. Take the time to think about what kind of coverage you need out of your policy, and you can choose the add-ons that can fill in the gaps your base coverage may have. The most important aspect of insurance coverage is ensuring it works for you.
Business Auto Insurance Keeps You Safe and Covered
Being a business owner is a time-consuming job, whether you own a large company with employees or simply work alone at your small business. There will always be countless things to do, remember, and worry about. Although commercial auto insurance may seem like just another hassle on top of an ever-growing list, it isn’t something to be forgotten or ignored.
If you use your vehicle for business, it is vital to ensure you have the proper coverage. Without it, you may find yourself in a difficult situation paying considerable expenses out of pocket. Depending on the severity, these expenses could wind up costing you your business.
Rather than running the risk, cover yourself and your business with the right auto insurance so you can continue doing what you love without worry.
Alexandra Arcand writes and researches for the car insurance comparison site, CarInsuranceComparison.com. She enjoys helping people understand the various insurance coverage options and what will best meet their specific needs.
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