Do I Need to Insure My Commercial Vehicles?
Car accidents can get expensive fast. That’s why you have car insurance for your personal vehicle—to protect your finances from possible repairs, medical bills, legal settlements, and many other costs stemming from an accident.
Your commercial vehicles need that same protection, except this time it’s not just about protecting your personal finances—it’s about protecting your company’s finances.
If an accident were to occur with one of your commercial vehicles, and you weren’t adequately insured, your business could be held liable for all the damages. Suddenly, your company’s finances and future profitability are in jeopardy.
When you need commercial auto insurance
Your company will need commercial auto insurance if:
- One or more vehicles are registered under the company’s name
- You use a vehicle to transport goods for your company
- You haul tools with a vehicle
- You have one or more employees who operate the vehicle
What if I use my personal vehicle for work?
If you use your personal vehicle for work (not including for commuting) then your personal auto insurance policy may not cover business-related accidents.
It’s always safer to have commercial auto insurance, even for personal vehicles that are occasionally used for work. A personal auto insurance policy is designed to protect the individual; a commercial auto policy is designed to protect the company and its workers.
What kind of coverage do I need?
Commercial auto insurance is similar to personal auto insurance, because they cover many of the same things. For example, both types of policies typically include:
- Liability coverage
- Uninsured motorist coverage
Each company is unique, and the policy you need depends upon many factors including size, location, and who drives the vehicles.