If your company utilizes any sort of vehicle for a business purpose, insurance is essential to protect against potential claims of liability arising from an accident. That much is clear. Just what sort of insurance protection a company needs is a far murkier equation.
The definition of “business purpose” regarding vehicle usage is broad and ranges from the obvious, a van used to deliver products, to the more obscure, a personal auto driven by an employee to pick up lunch. It is not surprising that many companies struggle with the issue of commercial insurance vs personal automobile insurance protection.
The key point to consider when deciding between commercial insurance vs personal is the fact that an employer can be held ultimately responsible for an accident that occurs when an employee is driving his own car or rental vehicle during the course of business. Such responsibility makes a company a clear target for lawsuits.
Unless your business is properly insured, the potential financial ramifications could be drastic. Comprehensive commercial auto protection includes two separate areas of coverage:
Business auto can be tailored to individual company-owned or company-leased vehicles or can be a blanket policy to cover all vehicles for damages and personal injury.
Non owned Auto insurance includes the same coverage for any vehicle driven by an employee during the pursuit of business. This can be a personal vehicle or a rental car.
Don’t become confused with the question of commercial insurance vs personal. Consult an experienced broker or agent to determine your company’s unique insurance needs.