Running A Small Business: Do You Require Commercial Transportation Insurance On Your Personal Vehicle?

Many large corporations have entire fleets of commercial vehicles at their disposal. Figuring out that this fleet must be insured by a commercial transportation insurance policy is really a no-brainer. However, the need to purchase this type of auto insurance is often far less obvious for small business owners. This is because many small business owners use their own personal vehicles to conduct business rather than having a separate company car. If you are a small business owner, taking the time to answer the three simple questions below can help you to determine whether or not you need to purchase a commercial transportation insurance policy or add-on in order to ensure you are covered in the event of an accident.

Do You Ever Use Your Vehicle To Transport Inventory?

Whether you are making deliveries or simply picking up new inventory from one of your suppliers, transporting inventory in your vehicle means that you will need to purchase commercial auto insurance coverage. In the absence of this type of coverage, the replacement cost of any inventory that is damaged, stolen, or destroyed during transport will not be covered. This is because personal insurance policies exclude coverage for items that are work-related rather than personal in nature.

Do You Have Employees That Also Use Your Vehicle?

If you allow any employees to use your personal vehicle to complete business-related errands, you will need to purchase commercial transportation insurance coverage. This applies even if your employee is simply running down the street to your local branch to get change or make a deposit. This also applies even if your employees are also family members. If the tasks they are completing are for your business, commercial insurance will be required to ensure both your vehicle and the driver are covered in the event of an accident. 

Do You Ever Use Your Personal Vehicle To Visit Customers?

If your business requires you to work in the field at all, you will need to purchase commercial auto insurance. This includes going to visit customers or potential customers either to perform a service, deliver physical goods, or even provide them with a quote. Even if you are not transporting any business-related items, your personal insurance policy will likely exclude any coverage for property damage or injuries that are suffered in an accident that occurs while driving your vehicle for the purpose of conducting business. However, in some cases, you may find that you are able to purchase add-on coverage rather than needing to purchase a completely separate policy.