Do I Need Commercial Automobile Insurance?
Certain business usage and vehicle types may be excluded from personal policies. Why? Since personal auto policies were not meant for businesses, they are written and rated differently. More important to you — a business owner or manager — businesses often need the particular coverages found in a commercial auto insurance policy.
When Do You Need Commercial Auto Insurance?
· If you are using your vehicle to transport goods or people for a fee or if you use your vehicle to conduct a service, you may need
a commercial auto insurance policy.
· A commercial auto policy may be appropriate if you need higher limits of liability because of the nature of your work.
· Hauling a considerable weight in tools or equipment or towing a trailer used to conduct your business may require a commercial
vehicle insurance policy.
· A commercial insurance policy may be needed if employees operate the vehicle or if ownership is in the name of a corporation or
· Signage of any type on your vehicle may require a commercial vehicle insurance policy.
· If your insurance agent states that all is ok, but something still seems wrong to you, check the following definition as used by most
state departments of insurance:
Fraud: A false representation of a matter of fact—whether by words or by conduct, by false or misleading allegations, or by concealment of what should have been disclosed—that deceives and is intended to deceive another so that the individual will act upon it to her or his legal injury.
If you are using your vehicle for business, and you think you or your agent might be in violation of the above definition of “fraud”, please get a second opinion, or call the insurance company’s home office to verify you don’t need commercial insurance” for your particular situation. Many business uses and vehicle types may be excluded from personal policies, so be sure you have the right coverage.