Two Reasons to Think About Commercial Auto Coverage
Business owners get different types of auto coverage under commercial insurance as opposed to a personal insurance auto policy. Following are two types of commercial auto policy coverage:
Hired and Non-Owned Auto: For any business with employees, this coverage is a must. It provides auto liability to a business when a vehicle must be hired or borrowed to conduct business. The most common scenario is the way this applies to employees. Hired and non-owned coverage will protect the business while an employee is out doing anything from running errands to making sales calls in his or her own vehicle. The business is “borrowing” the employee’s car to do its work. You might say, “Wouldn’t my employee’s personal auto policy take care of this scenario?” Yes…and no. If an employee is at fault for an accident and is on business time, the injured party could go after the employee personally as well as the business for damages. This is where hired and non-owned coverage kicks in. Commercial Auto Coverage is available at $1 million limit for a few hundred dollars.
Driver Other Car: This coverage is specifically designed for the business owner who may have one or two cars that are used personally and commercially. Most personal auto insurance companies want nothing to do with insuring a business. A personal auto policy was not intended for that purpose. Driver other car coverage provides personal liability coverage to the owner and his or her spouse, thus eliminating the need for two policies.
Review your auto policy, and if you don’t find such coverage listed, it’s very easy to get a commercial auto coverage quote from your agent.