There are many issues to consider when insuring a vehicle that is owned and used by your business. The questions that surround these issues, and how you would answer these questions, will determine what insurance you need to properly protect yourself, your employees and your entire business. It is important to remember that for this insurance, you don’t want to just go with the cheapest option. Your business is at risk every time a business vehicle is in motion.
As a business owner, you need many of the same insurance social media for business coverages for cars, trucks, vans or other types of vehicles you use for business purposes as you do for vehicles you operate in your personal life. The Business Owner’s Policy you purchased for your business does not usually provide liability or other coverages for vehicles used in your business. That means you will likely need a separate vehicle policy.
Most states require you to purchase liability insurance for bodily injury and property damage that may result from a vehicle accident occurring while you or someone from your organization is driving for business. The Business Auto Coverage Form (BACF) is the most commonly used contract for providing business auto liability insurance. Although the form refers only to “autos,” autos are defined to include cars, trucks, trailers, vans or other vehicles designed for use on public roads.
Many states also require you to have uninsured/underinsured motorist’s coverage and/or medical payments coverage, known as Personal Injury Protection (PIP) in some states. You can also purchase physical damage coverage for vehicles your business owns, leases or hires.
Each vehicle you use in your business can be separately “scheduled,” or listed on your policy, along with corresponding coverages. In other words, you can choose different coverages for your various vehicles, depending on the vehicles’ characteristics and the coverage you need for each.
Do I Need a Business Auto Policy?
Your insurance agent will ask in detail how you use vehicles in your business: who will be driving them, whether you own, rent or lease, and whether you and your employees are likely to be driving their own cars for your business. The answers to these questions will indicate the types of coverage you need