Running a business requires making smart insurance decisions. Many business owners mistakenly believe their personal car insurance covers all their needs. Unfortunately, this assumption can lead to costly gaps in coverage when accidents occur. Commercial and personal auto insurance function differently and protect different aspects of your operations. Brent Young Agency LLC, serving Manchester, CT, helps business owners avoid these costly mistakes.
Coverage Scope and Business Activities
Personal car insurance is designed for personal use, such as grocery shopping or commuting to work. However, once you use the same vehicle for business purposes, like attending meetings or making deliveries, your coverage changes. Personal policies often exclude business activities entirely. Commercial auto insurance provides coverage for all work-related driving needs, whether you’re visiting clients, hauling supplies, or transporting goods. Without commercial coverage, your insurance company may deny claims related to business use.
Higher Liability Limits and Legal Requirements
Businesses face a higher risk of lawsuits, which often involve larger financial claims. Commercial auto policies offer higher liability limits to address these increased stakes. In some states, businesses are required to carry higher minimum coverage than personal drivers. Additionally, commercial insurance covers employees driving company vehicles, whereas personal policies typically exclude coverage for others using your car for business purposes.
Specialized Coverage Options
Commercial auto insurance includes specialized protections that personal policies do not offer. For example, you can obtain coverage for employees using their own vehicles for work tasks. These policies also protect expensive equipment attached to your vehicles and any cargo you transport for business purposes.
Making the Right Choice
Don’t risk your business with inadequate insurance coverage. Contact Brent Young Agency LLC, serving Manchester, CT, today to ensure you have the proper commercial auto protection for your needs.