Do I really need commercial vehicle insurance?

By JC Demoin

Do I really need commercial vehicle insurance?
(Photo by Getty Images)

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For many small business owners, it can seem as if commercial vehicle insurance is an expense they can skip. Many people simply assume that their personal auto insurance policy will cover them if they’re ever in an accident. Unfortunately, too many business owners find out too late that this is rarely the case.  


Call an agent today if any of the following situations apply to you or your business:


Your business owns a vehicle.

If the title for a vehicle is held by your business (as opposed to being held by you personally), then you need to have commercial auto insurance. Many personal auto insurance policies have restrictions that state the policyholder will not be covered in a company-owned vehicle. Keep this in mind if you transfer the title of your personal car to your business.


You use your vehicle for business more than 20% of the time.

Using your personal vehicle for business on a regular basis could void parts of your auto insurance coverage. To make up for it, a commercial insurance policy needs to be purchased. It will provide coverage only when the vehicle is being used for business.


You store business items in your personal vehicle.

If you don’t have a rider on your personal auto insurance policy that covers business property, then you need to buy a commercial insurance policy to protect things such as inventory, equipment, and computers. If these items are stolen or damaged in your vehicle, a commercial auto insurance policy could pay to repair or replace them.


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