Another reason why you need to get a commercial auto insurance is if your employee(s) drives the company car. By getting a commercial vehicle insurance, you can list the name of the employees that drive your company car. This way, the insurance company can properly write you a policy based on the risks that the vehicle could face.
Look at your vehicle’s registration and check whose name it’s registered under. If it is registered under your business’ name, then you definitely should get a commercial vehicle insurance. However, if the business vehicle is registered under your name, it doesn’t mean you only need personal auto insurance for it. Remember, if you are using the vehicle mostly for business use, you have to get commercial insurance for the best protection.
Use for Business
As a business owner, you need to ask yourself if you are using the vehicle for your business regularly. Regular business use is defined as using it for your operations for at least 3 times in a period of 1 month. If you answer yes, then a commercial vehicle insurance is what you need.
In addition, here are some of vehicle use that warrants a commercial vehicle insurance:
- Transporting Equipment
- Carrying Chemicals and Materials
- Vehicles equipped with snow plows and cranes used for business use
- Towing Business
- Product Delivery
- Trucking Hauls
- Chauffeur Services
Depending on the use of your vehicle for your business, you might want to consider adding these to your commercial insurance policy.
- Coverage for a third party as an additional insured.
- Third party coverage for your drivers to be insured.
- Subrogation Waiver
- Coverage for hired vehicles
- Coverage for transported equipment
Remember, not all businesses need a commercial vehicle insurance. There are small businesses that can get by with a personal auto insurance. You need to assess your needs and your use of your company vehicle before deciding to spend more money on a more comprehensive and essentially higher premium.
At Western Pacific, we aim to make our client's life easier with policies that are tailored to their needs. You can get more information about our products and services by calling our agency at (702) 932-3105. Get your free quote today by CLICKING HERE.