Protection and Peace of Mind

Insurance is protection for your business, your home, and your family.  I know that it may seem expensive but the alternative may be starting your nest egg from scratch. One of the biggest confusion in the insurance world is the difference between personal auto insurance and commercial auto insurance.  Many people think their personal auto insurance will cover their vehicle and business equipment if they are using it for business purposes. They could not be more wrong! Let’s take a look at the commercial auto exposure.

Personal lines auto policies will only cover a minimum commercial use exposure, such as the artisan contractor who uses his vehicle only to go to and from job sites and usually no more than two sites a day.  There is no coverage for the contractor’s equipment in the toolbox. Personal lines do not cover any type of delivery of products either. The best way to cover your auto, if you deliver anything, is under a commercial auto policy also known as a Business Auto Policy (BAP).  Under a Business Owners policy, hired and non-owned automobile, coverage can be added to the policy.  This would cover you if your office assistant uses her/his own vehicle to go to the bank, post office or other errands.  However, if you or your employees pick up or deliver merchandise, then you need a commercial auto policy to provide the proper protection for both you and your employee.

There are several parts to the Business Auto Policy. The BAP offers liability and physical damage coverage without adding several endorsements or forms.  Policy liability will cover only the scheduled autos and listed drivers on the policy.  It is important that you ask your agent what type of liability coverage you have because company policies do not all read the same.  This is also why it is important for you to read your insurance policy.  Boring I know, but important! The physical damage part provides coverage for collision and other than collision (comprehensive) damages, and/or named peril loss coverage.  The named peril loss coverage is the least expensive but covers very specific things such as loss by fire or theft.  The comprehensive (other than collision) and collision covers the damages that occur from any collision or fire, theft, or other physical damages done to your vehicle.  Another part of the Business Auto Policy is the medical payments, which reimburse the passengers and operators of your vehicle for their medical and funeral expenses arising out of an accident involving your vehicle. Uninsured/underinsured motorists coverage is a beneficial part of the BAP. It pays for the vehicle operator and passengers if there are injuries in an accident that is caused by someone who does not have insurance or who has limits lower than your limits of coverage. 

Of course, none of us want to have an accident, but they happen.  Personal lines insurance is for personal use, commuting, and limited business use (there is an extra charge for business use).  The best way for your business vehicle to be insured is by purchasing a Business Auto Policy.  Don’t risk it! Buy the right insurance policy for you.


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