When Do I Need Commercial Auto Insurance?

When Do I Need Commercial Auto Insurance?
If you are a small business owner (or a large business owner for that matter), or even are just self-employed, there’s a good chance you need more than a standard auto insurance policy.

There are a number of different reasons why you might need commercial auto insurance, and as a business owner you should make it a priority to find out how Florida commercial auto insurance works and whether or not it’s a necessary business expense in your situation.

Higher Risks Require Higher Coverage Limits
In most situations, a vehicle used for business purposes involves it in higher risks of getting into an accident, and therefore, you can’t cover it under a “standard” auto insurance policy. You need the higher coverage limits that only a commercial policy provides.

Greater travel frequency, (possibly) greater variability as to who is using the vehicle, and often larger, heavier vehicles that cause more damage and greater injury in the event of a collision, all call for the added protections of commercial auto insurance.

Vehicle Types Can Require Commercial Auto
It’s true that even an ordinary passenger car or pickup truck can require commercial auto, but often, the vehicle type itself demands commercial coverage.

Examples of vehicles that may need commercial coverage include: toe trucks, dump trucks, catering trucks, refrigerated vehicles, flatbeds, and any rented/leased vehicles.

Heavier duty vehicles generally cost more to insurance on a commercial policy, but also realize that you can get bulk (“fleet”) discounts from many insurers for insuring multiple such vehicles through the same company.

Specific Usages May Require Commercial Coverage
Usually, any business use whatever will mean you need commercial cover, though there are some exceptions. Just commuting to/from work, however, does not require a commercial policy.

If you are using the vehicle(s) to make deliveries (including pizza and newspapers), carry equipment, transport hazardous materials, transport commercial products for distribution/sale, act as a limo/taxi service, or to tow other vehicles, you will need commercial auto insurance.

If you have employees who will be driving the vehicle for any business purposes, or if the vehicle requires a commercial plates, tags, and registration – you need a commercial policy for it in the state of Florida.

You Have Valuable Cargo You Want To Protect
Finally, another reason you might need commercial auto is to protect valuable cargo you are transporting (either that you own or that you are transporting for a customer).

It may require an additional rider on your policy to cover cargo sufficiently, so you’ll have to check with your insurer. But the risk of damaging or losing cargo or of seeing it accidentally damage other property or cause a personal injury, may be too great to risk going without a commercial auto insurance policy.

Thus, both to stay legal and to ensure you are fully covered against property damage, injury to employees and others, cargo loss, and more, you may well need Florida commercial auto insurance.

To learn more about what commercial auto covers and how it works, contact Flagler County Insurance Agency today for a free, no-obligation consultation and a quick quote!