Just as your homeowners insurance policy may not provide adequate coverage when you operate a small business from your home, your personal auto insurance policy may leave you liable in a business-related automobile accident. If you use your car, truck or van for your work, you’re going to need some special small business car insurance coverage. You have a couple of choices.
Depending on your insurance company and your specific circumstances, you may be able to simply add a business endorsement to your regular auto insurance policy. This is typically a more affordable small business car insurance option. And, typically, it will work for you under these situations:
• Your business is a sole proprietorship, with no employees driving your car for business reasons
• You have only one vehicle designated for artisan use
Different insurance companies will have different definitions of what qualifies as artisan use for small business car insurance purposes, but generally the term extends to small, or casual, contractors whose work involves using tools at a customer’s home or business. It’s a fairly broad category that includes carpenters, electricians, plasterers, bricklayers, painters, handymen, plumbers and roofers, as well as providers of such skilled services as piano tuning, tree surgery and interior design. Talk with your car insurance company to find out if you qualify for a business endorsement to your car insurance policy.
Your other option is business vehicle insurance, also called commercial vehicle insurance. This will probably be required if the vehicle to be insured is used primarily for business (frequently determined by a percentage of total miles driven). As with all insurance choices, you want to be certain your small business auto insurance on your personal vehicle has sufficiently high limits to protect your business and other assets.
Generally, you’ll be a candidate for a commercial auto insurance quote under these circumstances:
• You need coverage when you transport, pick up or deliver materials or people
• You have employees driving your vehicle
• You need greater business automobile insurance coverage than your personal car policy provides • More than one vehicle is used for business
Other circumstances and situations may also dictate your need for commercial car insurance. You may want to discuss your particular needs with a small business auto insurance quote specialist. Commercial vehicle insurance quotes are available for any type of business including sole proprietorships, LLCs, partnerships and corporations.