Whether you use your own vehicle for business or have one for that express purpose, having the right auto insurance coverage is a little more complicated. Many business owners opt for commercial auto coverage, which provides a comprehensive range of protections that a personal policy can’t match. Here’s a closer look at why your small business might need it.

What Does Commercial Auto Insurance Cover?

If your business vehicle is determined to be the cause of an accident, auto liability coverage is essential. Injuries or property damage occurring to a third party are both compensated by these policies. It will also pay for legal costs related to an accident, which can be more exorbitant when your business entity is involved. Additionally, medical payments coverages ensure you and your passengers can receive coverage for medical care.

Damage to your vehicle caused by other incidents can also be covered. For example, if your vehicle is subject to theft or vandalism, comprehensive physical damage coverage will save the day. Underinsured/uninsured motorist coverage is also a good idea if the driver at fault lacks sufficient insurance. 

Does Your Personal Auto Policy Also Offer Sufficient Coverage?

When a personal vehicle is used for business purposes, personal auto insurance policies might offer some protection. While it largely depends on the insurance company, many personal policies offer coverage for infrequent business use of a vehicle. However, many circumstances would be better served by a commercial policy, and it largely depends on how often the car or truck is used for business purposes and the risks those purposes entail.

For instance, frequent use of a personal vehicle, even for meeting with clients and associates, might necessitate a commercial policy. Making deliveries or transporting equipment to and from a job site will probably not be covered by a personal policy due to the increased risk of accident or injury. If the vehicle is registered to your company, that’s another sign a commercial policy is needed.

Southern Insurance AL, LLC knows that shopping for a commercial auto insurance policy can be challenging. This Foley, AL-based insurance company offers a range of policies suited to the needs of business owners, including affordable auto coverage. When it comes to personal coverage, they provide SR-22 insurance to high-risk drivers to ensure they can retain their driving privileges. Schedule a consultation today by calling (251) 943-3340 or visit the website to learn more about auto insurance.