Every business owner is liable for the actions of their employees, so you could be held responsible if one of your drivers rear-ends someone while making a delivery. Even if you’re self-employed, personal car insurance policies usually won’t cover accidents that happen while you’re working, which is why you need commercial coverage to protect you from liability claims. The key to getting the right policy starts with understanding the difference between personal and commercial car insurance.

The Differences Between Commercial & Personal Auto Coverage

Who Is Covered

Personal car insurance policies cover a particular individual and provide only minimal coverage to anyone else who might be driving the vehicle. Commercial policies, on the other hand, are written for the business itself and cover all employees qualified to drive your vehicles. If your business uses company cars for deliveries or service calls, even occasionally, a commercial car insurance policy is a crucial investment.

Higher Coverage Limits

Most insurance experts recommend carrying liability coverage equal to the full value of your assets. For your personal policy, $100,000 in coverage might be enough, but would those limits protect your business investments in the event of a lawsuit? Commercial car insurance policies typically provide much more protection, which can be especially important if you have large vehicles capable of causing a lot of damage in an accident.

Since 1906, Charles Adams Insurance Agency has been helping private individuals and business owners throughout Ashland, KY, get the coverage they need at the best prices available. They work with more than 10 different car insurance carriers, giving them a wide range of options to choose from and the expertise to help you select the policy that’s right for you. Visit their website for more on their car insurance options, get more tips on Facebook, or call (606) 325-9709 to speak to an agent and request a quote.