Business insurance does not always include auto coverage for company-owned vehicles. For example, if you own a business and bought a business owner’s policy (BOP), your policy may not cover auto insurance, which means you need to buy a separate commercial auto liability policy.
You need to decide what liability limits for property damage and personal injury you want. People who use their personal vehicle for making deliveries, driving others for pay, truck owners who sometimes use their trucks for snow plowing, hauling and other paid activities also generally need commercial auto insurance.
Why Do I Need Business Vehicle Insurance?
In the event a business vehicle is in an accident, it is unlikely that the vehicle owner’s personal liability insurance will cover a wreck when the owner’s vehicle is being used for business. Conversely, if the employee was using his or her own vehicle for a business reason, then their personal liability insurance might not cover the incident.
What Does Business Vehicle Insurance Cover?
Each vehicle used by the business requires a policy. This is an advantage for businesses as each vehicle can have different coverage. An old pickup may just need property and personal liability insurance. A new SUV the owner uses for business and personal use may have both personal, property liability, and collision insurance that covers damage to the vehicle.
Nearly every business can get the right amount of coverage for each business-owned vehicle as well as all employee-owned vehicles used in the normal course of business. This shields the business in the event the employee is under-insured or not insured.
Most businesses can obtain their coverage by using the Business Auto Coverage Form also know by the acronym BACF.
What Coverage Should My Business Choose?
When selecting coverage using BACF, businesses usually choose from among three types of commercial vehicle insurance. They are:
1. Coverage for vehicles owned by your business.
2. Coverage for every vehicle your business owns, hires or leases.
3. Coverage for every vehicle used by your business, including those that your business doesn’t own, hire or lease.
Most business owners choose the third type of insurance as it covers employee use of their own personal car when used for company business.
Where your business is, the type and number of vehicles, the coverage levels, and deductibles all are factors in determining your commercial auto coverage. To make sure that your business’s auto coverage is right for you, talk with your insurance advisor.
Selecting the correct business auto insurance for your business may be confusing, but it doesn't have to be. Call Voyager Insurance today at (800) 342-4444 to discuss how to choose the right policy.