Do I Really Need Commercial Auto Insurance? Or Will My Personal Car Insurance Policy Do The Trick?
Increasingly, many people work for themselves or work from home. Working remotely is common place now, not an anomaly. But even if you work for yourself and/or work from home, you may find that you frequently visit clients, job sites, even attend industry events. If that’s the case, do you need commercial automobile insurance? Or will your personal car insurance policy suffice? Here, we’ll try to give you some guidance in securing the right car insurance for your needs.
Personal Lines Insurance: Your Personal Car Insurance Policy
Professionals, like lawyers, accountants, and consultants, often find they visit clients and work sites on a regular basis. Additionally, it is common practice to write off kilometers for tax purposes when an individual’s personal vehicle is used in the course of your employment. In these types of situations, your personal car insurance may be sufficient. One of the most important caveats to this however, is whether or not your vehicle has any decals or advertising on it. If there’s no advertising or decals, most personal car insurance policies can accommodate vehicle use of this type under what is called Class 07.
Class 07 signifies occasional business use of a personal auto. It is traditionally meant for professionals employed in the types of fields above. These jobs typically do not require any tools, people, equipment, or product to be carried, transported, or delivered. As such, many insurers are comfortable insuring this type of business use under a personal auto policy. Even so, your insurer will need to know. Approach your broker to discuss your options for insuring your business use with a personal car insurance policy.
Commercial Car Insurance
Conversely, for people working in contracting or artisanal fields, a commercial auto insurance policy is often more appropriate and indeed necessary. If the vehicle is used to carry or deliver people, product, supplies, or equipment, commercial insurance is generally required. Not sure if commercial insurance is really needed? Talk to your broker to determine for sure the best insurance solution for you and your employment needs.
Whatever your occupation or employment, be open and candid with your broker about how you use your vehicle and if it has any advertising or special equipment installed. Ensuring that you are properly covered is important for any business.
Accident Benefits & Injury Coverage
One last thing, which is especially important if you are self-employed, be sure to inquire with your broker about your accident benefit limits on your auto insurance policy. This should be done regardless if it is commercial auto or personal auto policy. You may find that you need additional coverage for things like income replacement or medical care in the event of an auto accident. This is especially true if you do not also have access to employee benefits. Making sure you have the right insurance coverage will give you the peace of mind to carry out your business with confidence.