As a small business owner, you probably struggle to limit your operating budget to things you really need; and you may even think that commercial auto insurance is something that is optional and not a necessity. In most cases, you would be wrong if you made that assumption. Commercial auto insurance, like other types of business insurance, covers a business – even a small business – in the case of a loss. You don’t have to have a fleet of long-haul trucks or overnight delivery cars to warrant the kind of coverage that commercial insurance provides.
How To Know If Your Business Needs Commercial Auto Insurance
If your business meets any of these criteria, you may need commercial insurance:
- You use one or more vehicles to pick up or deliver goods, including food, documents, materials and other miscellaneous supplies.
- You use one or more vehicles for a limousine, taxi or livery service.
- You have one or more vehicles that are owned by, title to or registered to a business, partnership or corporation.
- You have one or more employees who drive your vehicle(s) on a regular basis.
- You have one or more vehicles that have a gross weight exceeding 10,000 pounds or that have a rated load capacity of 2,000 pounds or more.
- You have one or more vehicles equipped with cooking or catering equipment, bathrooms, snowplowing equipment, hydraulic lifts, altered suspensions or racing equipment.
- You have one or more vehicles that have been fitted with permanent toolboxes or ladder racks used to carry out your business.
There Is A Difference Between Commercial And Personal Auto Insurance
Many small business owners who either don’t know about commercial auto insurance or choose not to purchase it, thinking that their personal auto insurance policy will cover their business vehicles. In fact, your personal policy covers only some limited, business-related uses of your vehicle; however, if your vehicle or vehicles are used primarily for business, your personal policy won’t provide coverage in case of a loss.
What Commercial Auto Insurance Covers
Here are some of the things commercial insurance may provide that personal insurance doesn’t:
- Insurance for vehicles you own as well as for vehicles you lease but don’t own
- Insurance for trailers you don’t own but haul under a trailer interchange agreement
- Reimbursement for rental vehicles that allow you to continue doing business when one of your vehicles is inoperable
- A single-deductible option that lets you pay one deductible even if you have a vehicle and a trailer (or another piece of hauled equipment) that are both damaged in a single incident
- Coverage for yourself even when you’re not driving a vehicle you own
While you may think you’re saving money by not buying commercial auto insurance, you may end up doing irreparable damage to your small business because a single, non-insured event can leave a devastating financial impact. To find out more about commercial auto insurance, call the Anthony Blackmon Agency in Frisco, TX at (469) 291-9006 or visit www.anthonyblackmonagency.com.
Commercial Auto Insurance Frisco TX
Anthony Blackmon Insurance Agency
9191 Kyser Way, Suite 200
Frisco, Texas 75034