Many entrepreneurs and small business owners use their personal vehicles for business—but this practice can be risky. In the event of an accident, your personal auto insurance policy might not cover you for business use, while your business owner’s policy (BOP) isn’t likely to help unless you’ve purchased a commercial auto add-on.
Not sure if you need to upgrade your insurance policy? Ask yourself these seven questions.
1. ARE ANY OF YOUR VEHICLES REGISTERED TO A BUSINESS?
Contractor Insurance Snotherly Insurance
This applies if your vehicle is registered to a business, partnership, or doing business as (DBA) entity.
2. DO YOU USE YOUR VEHICLE TO TRANSPORT GOODS OR CONDUCT SERVICES?
Business Automotive Insurnace Snotherly Insurance
Whether it’s construction materials or traveling between client offices, it counts.
3. DO YOU EARN MONEY BY TRANSPORTING PEOPLE AND/OR PROPERTY?
This puts you at risk of significant on-road exposure, so talk to your independent insurance agent about your options if this is true.
4. IS YOUR VEHICLE BUILT FOR WORKING OR HAULING?
Snotherly Insurance Trucking Haul Insurance
A vehicle with a gross weight of more than 10,000 pounds or one that is equipped with special features — like a snowplow — falls into this category.
5. ARE YOU DRIVING THE VEHICLE REGULARLY FOR BUSINESS USE?
Snotherly Insurance Business Auto Insurance
Think of regularly as more than three times a month — not including commuting, of course.
6. DO EMPLOYEES ROUTINELY DRIVE YOUR VEHICLE?
Snotherly Insurance Employee Driver
This applies if the driving is part of their job responsibilities
7. DOES YOUR BUSINESS USE NON-OWNED OR HIRED VEHICLES?
Snotherly Insurance Nonowned Auto Coverage
In this case, employees may be using their personal vehicles to conduct business or you may routinely drive rental cars for business purposes.
If you answered YES to any of the above questions it is likely that you need to upgrade to a commercial auto policy. Contact a Snotherly Insurance agent today to discuss further your specific business or individual automotive insurance needs.
Blog post originally published by Liberty Mutual here.