Smart drivers carry the required amount of liability insurance on the automobiles they drive for personal reasons. But it’s important to know that a personal auto insurance policy won’t cover you if you are driving an automobile for business reasons.
Who Needs Commercial Auto Insurance
If you are required to drive your personal automobile for business reasons, it’s important to invest in commercial liability insurance to cover expenses in the event you are involved in an accident. If you are a business owner whose employees use vehicles in the course of their duties, such as shuttling people to and from one location to another or delivering foodservice to customers, you are required to have a commercial insurance policy on your vehicle. The amount of coverage you need depends upon the commercial liability insurance requirements outlined by your state.
What Determines Adequate Commercial Coverage
Most states require carrying a minimum of $100,000 in commercial auto insurance coverage. Factors such as the amount of driving done and the type of business requiring employees to drive a vehicle in the course of their daily duties will impact the amount of commercial coverage you need. The amount of expenses you might incur in the event of an accident due to repairs, replacement costs and medical services dictates a commercial insurance policy in the amount of $500,000 of liability coverage per accident can help to prevent financial disaster.
Types of Commercial Coverage
In addition to covering you for liability in the event of an accident, commercial insurance can also be obtained for mobile equipment liability, liability coverage for vehicles that are not owned directly by you, as well as third party coverage.
Benefits of Commercial Coverage
Commercial insurance offers you the peace of mind that comes with knowing your business or personal assets won’t be at risk in the event of an accident involving an automobile or other vehicle that is used for business purposes. Not only will you be operating legally according to state liability requirements, you will be spared from losing time and money in the event a vehicle used for business purposes is involved in any sort of accident.