Home business owners may need commercial auto insurance even if they use their personal vehicles for work purposes. The insurance company regards any vehicle used for work as a commercial vehicle, and it’s hard to control all the risk factors on the road. However, it is possible to control the financial effects of an accident on the business. Here, business owners can learn how a Commercial Vehicle Insurance Agent in Monroe MI can help them protect the company’s assets.
Commercial Auto Coverage for Home-Based Businesses
Commercial insurance is ideal for a home business owner who owns the vehicle they use for work. A business owner should have this coverage if any of these scenarios apply:
- A vehicle is used for business purposes only
- Employees drive the company vehicle
- A personal vehicle is driven for work
Different rules apply if the home business owner does not drive his/her own vehicle, as shown below.
Non-Owned/Hired Auto Insurance for Home-Based Business Owners
If a person owns a home-based business and uses a rented vehicle, hired/non-owned insurance may be appropriate. Listed below are some situations where this coverage could be beneficial.
- When vehicles are rented for work
- When workers drive their personal vehicles
- When a company uses a car-share service
A hired/non-owned policy can be an affordable addition to a small business’ insurance portfolio, and some insurers offer deals that combine this coverage with general liability insurance. Talk to a Commercial Vehicle Insurance Agent in Monroe MI for more details.
How Commercial Insurance Protects Home Business Owners
According to NHTSA, a work-related auto accident can cost a business owner over $128,000 per injury. Commercial and non-owned policies are intended to protect home business owners from the crippling costs of auto accidents, and they provide the following benefits:
- Coverage for property damage sustained during an at-fault accident. In some cases, criminal damage is also covered.
- Payment of other drivers’ medical expenses
- Coverage of legal bills associated with a lawsuit against the at-fault driver
Commercial and hired auto insurance protects the business owner from these expenses up to the policy limit, and umbrella coverage can extend the limit substantially. Contact the Insurance Center Of Monroe to get a quote or buy a policy.
