Compared to personal auto insurance, a commercial auto policy offers unique advantages, such as higher liability limits and the ability to adjust coverage needs for multiple vehicles during the plan’s period. Typically, people refer to these plans when they need to protect vehicles that are owned or operated by commercial entities, such as delivery vans or company cars. However, there are many other situations where you may need a commercial auto insurance policy. Below are some of the most common scenarios when this type of coverage is necessary.   

3 Situations That Require Commercial Auto Coverage

When Business Owners Use Their Own Cars for Company Purposes

If a business owner uses their own vehicle for work purposes, they may believe a personal auto insurance policy is enough to cover the risk. However, these plans are only designed to cover private use and not risks that occur when people use vehicles for commercial purposes.

If a personal claim is filed when you were using a car for work, an insurance company may not have to accept it. In some cases, you may even lose coverage altogether. To prevent the costs associated with denied claims, add your own vehicle to your company’s auto insurance plan.

When Employees Drive Personal Vehicles for Work

Although personal car insurance will cover an employee’s commute to and from work, it won’t necessarily protect against incidents that occur when the vehicle is used for work. For example, if your assistant delivers paperwork to clients or regularly picks up lunch orders for the staff, they should be covered by your commercial plan.

When Drivers Transport Clients

Independent professionals — such as real estate agents, lawyers, and social workers — may only require personal coverage if they use their vehicles to commute to and from work sites. However, this changes when these motorists also use their vehicles to transport clients. If the driver gets in an accident and a client passenger is injured, a personal auto policy may not cover the damages. If this situation applies to you, having a commercial auto insurance plan can protect you from legal and financial consequences.

If you’re not sure about your commercial auto insurance coverage needs, it’s best not to leave it to chance. Instead, consult a trusted agent who can review the activities of your business and develop a policy that addresses your specific risks.

For reliable, affordable commercial auto insurance in Edina, MN, turn to Farmers Insurance: Daniel Oliver. Backed by the nationally-recognized coverage offered by Farmers Insurance®, this agent is able to offer comprehensive protection while still providing the insight local entrepreneurs need. In addition to insuring on-road activities, this agent will also equip your company with a tailored business insurance plan that will help protect all the investments you and your team have made. Visit this agency’s Facebook to learn more about available services, or call (952) 925-4454 to request insurance rates.