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Auto Insurance Cost That Business Owners Need To Incur

Many people do not understand the difference between personal, and business auto insurance, and when you need one, versus when you need another. Keeping auto insurance cost low is a priority especially if you are just opening up a business. Making the assumption that your personal auto insurance will cover any business accidents could end up really being a disaster. Knowing what the difference is and what type you need to cover what vehicles is very important for the safety of your staff, as well as your business overall.

If you are a business owner who has vehicles that are allocated just for your business like cars, trucks or other motor vehicles, you are not able to use the same insurance for them that you do for your personal travel. Although you, no doubt, already have a Business Owners Policy (BOP) it will not cover any of the vehicles used in the business operations. Like individual compulsory insurance, having liability on your business vehicle is also mandated by law, according to the specifications of the state for which your business resides. You must purchase the same minimum for physical property and bodily injury that can be a result of you, or one of the persons within your organization, getting into an accident.

Along with the minimum liability insurance, some states will also require that you have the addition of uninsured motorist coverage, and additional medial coverage. Although not mandated, it may also behoove you to purchase comprehensive insurance on your vehicles as well. There is a special form that you need to fill out called the Business Auto Coverage Form (BACF) to take care of your business needs. A major advantage of business auto coverage is that each of the vehicles that you insure will have their own policy. That means that you can have different liabilities, and limits, on different vehicles instead of one policy for all. You may want higher liability for the vehicles that will get the most use and less for those that will only be used infrequently.

Your personal liability insurance will provide coverage when you use the vehicle for some of your business travel, or when the vehicle is used by an employee. If you are sued, however, your personal insurance will only cover you as the driver. If the injured person decides to sue your business as well, there will be no coverage for your place of business leaving you personally responsibility. Therefore, even if you have a small company where you only use one car for transportation, if you don’t take out a separate business policy you are risking losing your business if something should happen, and perhaps being held personally responsible. It is always better to stay compliant and over-covered than to find out after the fact that your coverage was not enough.

Find out what policy coverage is available for both your personal and business use. Simply scroll to the top of the page and input your zip code in the space provided. Within minutes, you will receive a free rate quote allowing you to compare insurance costs to choose the best price for your auto insurance needs. Owning a business can be expensive, your auto insurance cost should not be.