Owning a business comes with many challenges. It can sometimes seem difficult to stay on top of all the many things required when working for yourself. Since it's all up to you, you might be tempted to cut some corners to create less hassle or even save money.
No matter what kind of business you own, driving for business creates a whole new field of insurance coverage. Your current insurance policy will not cover if your vehicle was used for business rather than personal use.
You may think commercial coverage for your vehicle isn't a necessity. If you drive safely and are sure to avoid accidents, there is no reason to spend the extra money on another form of insurance coverage.
The truth is, no matter how careful you are and how many precautions you take, you can't explain everything. You can control your own vehicle, but you cannot control the actions of others or nature.
Instead of leaving things to chance, you can look into a commercial policy such as auto insurance for independent contractors . There are many add-on options available, so business owners can find a comprehensive policy that works best for them.
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Why is a professional auto insurance policy important?
It's easy to see why someone who owns a business wouldn't think of a business auto insurance policy. If you drive your personal vehicle, you already have insurance, right?
Technically, yes, your personal vehicle is insured. But that doesn't mean the coverage extends to business use. No matter how hard you try to reduce the risk accidents can still happen.
If an incident occurs while using your vehicle for business purposes, your personal insurance policy will not cover your costs. While some minor things may be covered, the majority will be a personal expense if you don't have business coverage.
There are more things than you can imagine that can go wrong while you're driving. For example, other drivers can hit you and cause an accident; a tree branch may fall on your vehicle; extreme rain can cause you to hydroplane and slide off the road. Countless cases can occur that are beyond your control.
The best bet is to simply find commercial auto coverage that works for you and your needs. Policies are not uniform when it comes to business. There are plenty of options so you can tailor your font perfectly to your needs.
Standard auto insurance coverage for businesses
Commercial auto insurance starts with a basic policy, which will generally cover the needs of most businesses using their vehicles for a minimum term.
Collision and full coverage
Owning a car always involves risks. Whether you're driving it or have it parked somewhere, there's always a chance something could happen to it. This is where collisions and full coverage come in.
- Collision coverage – helps cover the costs of accidents such as hitting an object or another driver or something hitting and causing damage to your vehicle.
- Comprehensive coverage – helps you cover the costs if something happens to your vehicles, such as theft, vandalism and natural disasters.
Bodily Injury Coverage
The worst case scenario after a car accident is for someone to be seriously injured or die. However, sometimes it can happen.
That's why bodily injury coverage is a crucial part of commercial auto insurance. It will cover medical expenses and possibly provide legal coverage if you hit someone and cause injury or death.
Material damage coverage
Just as you run the risk of hitting other vehicles while driving, there is also the risk of causing damage to other people's property. This can include houses, lawns, etc. If this happens, property damage coverage will help pay for the cost of the damage and can provide legal cover if needed.
Bodily Injury Coverage
When you are involved in an accident, you have more potential injuries to worry about than the other car. As a result, you might end up or find a passenger, such as a good employee , injured after an accident. Personal injury cover will cover medical costs for you and your passengers, regardless of who is responsible for the incident.
There are few feelings worse than being hit by someone, only to find they don't have car insurance to pay for the damage. However, with uninsured motorist warranty, you'll have peace of mind knowing that repair costs won't have to come out of your pocket even if it happens.
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Car insurance options for businesses
While the standard business policy may be perfect for some, it may not be sufficient for others. If so, you can easily find add-ons for your coverage to better suit your business needs.
Add-on options can range from towing assistance to rental coverage and most needs in between. Take the time to think about the type of cover you need in your policy and you can choose the add-ons that can fill in the gaps in your basic cover. The most important aspect of insurance coverage is making sure it works for you.
Business Auto Insurance Covers and Protects You
Being a business owner is a time-consuming job, whether you own a large business with employees or just work your small business on your own . There will always be countless things to do, remember and worry about. While commercial auto insurance might seem like just another issue on an ever-growing list, it's not something to forget or ignore.
If you use your vehicle for business purposes, it is essential to ensure that you have adequate cover. Without it, you could find yourself in a difficult situation by paying considerable expenses out of pocket. Depending on the severity, these expenses could end up costing you your business.
Rather than take the risk, cover yourself and your business with the right auto insurance so you can keep doing what you love worry-free.
Alexandra Arcand writes and does research for the car insurance comparator, CarInsuranceComparison.com . She enjoys helping people understand the different insurance coverage options and what will best meet their specific needs.
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