The experts at Hale & Associates, an insurance brokerage, can show you the four most important things you need to know about Commercial Auto insurance. Nearly everyone is aware of the necessity for insurance on your personal vehicle, but these main differences must be addressed when you are considering insurance for your business.
1. If you own a business and use a vehicle for any part of that business, such as delivery of products or to pull equipment, then a personal insurance policy probably will not cover your liability in the event of an incident. Using your business vehicle for personal runs to the store or to pick up the kids at school does not relegate it to a personal vehicle. The vehicle is still part of the business and must be insured as such to guarantee coverage.
2. Talk to the insurance agents at Hale & Associates to find the coverage you need for your business. How you use your vehicle in your business determines your commercial insurance needs. There is a vast difference between using your vehicle to deliver pizzas and for towing heavy equipment.
3. Unlike personal auto insurance, Commercial insurance is tax deductible as a business expense. If you use your vehicle as a method to deliver newspapers, then your commercial insurance premium is deductible.
4. Commercial insurance tailors to your needs. Coverages are not consistent. While the coverage of whatever cargo you may be carrying is a consistent part of a commercial insurance policy, the reimbursement for renting another vehicle while your business vehicle is being repaired or serviced is not. Businesses that rent vehicles from other businesses to carry out business, such as moving companies that rent form trucking firms, need a non-owned vehicle coverage. On the other hand, businesses that rent out vehicles to other businesses still need commercial insurance coverage on that vehicle.