Auto Insurance for Business – Auto Insurance Business
With all of the precautions in place now it is hard to imagine a business
not having the proper auto insurance; however it is actually a fairly
regular occurrence. A large number of small business owners may not even
know they need a different type of insurance for business use of their
vehicles. Hundreds of claims are denied in California every year because
of insured’s who did not have their vehicle rated as business use, even
though it is often times cheaper to insure a vehicle for business coverage
as opposed to personal use.
Any time a business is using a vehicle to make money it is deemed business
use. This does not include a person who commutes to a job. A vehicle used
for commuting to and from a workplace will require a standard personal
auto insurance policy. Only if the person is using the vehicle while on
the clock, on the job, does it require a business use policy. This is the
case for people transporting supplies, goods or people via car while on
the job, such as delivery services or caretakers.
Some of the most common forms of business use that go uncovered are
landscaping and in home care. With today’s rough economy we have begun to
see the rising trend of people taking on second jobs and extra work to
make ends meet. Often times these people these second jobs will involve a
small business that is run out of the home, since it keeps overhead down.
When people are running their business from home they tend to forget that
the same rules that apply to every other business also apply to them.
Business owners should be especially careful when purchasing insurance
coverage for their vehicles. It is important to have a business vehicle
rated properly, or the insurance company may deny a claim in the event of
a loss, leaving the owner financially responsible for any damages. In
addition to having the claim denied they may also be subject to fines or
even jail time depending on the severity of the claim.
Obtaining the correct insurance policy and the correct coverage for a
business vehicle, may not only save money, but will also protect the
business from financial losses. It is important for small business owners
to speak to their insurance agents about the appropriate coverage in order
to protect the overall financial integrity of their business.