“Business vs. Personal Auto Insurance: What You Need to Know”

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What Is Business Auto Insurance?

Business auto insurance provides coverage for liability and damages for vehicles owned by your business or used in business operations. Unlike personal auto insurance, it is designed to protect your business vehicles and assets.

If a vehicle owned by your business is involved in an accident, your company could be liable for the resulting injuries and property damage. This coverage is essential for protecting your business where personal auto policies and regular business insurance do not.

What Does Business Auto Insurance Cover?

Business auto policies cover cars, trucks, trailers, and other vehicles your business owns. They can also cover leased or rented vehicles and personal vehicles used for business purposes. Coverage typically includes:

• Liability Coverage: Covers bodily injury and property damage from an accident. States may have mandatory requirements for liability insurance.
• Collision Coverage: Covers damage from collisions or vehicle overturning.
• Comprehensive Coverage: Covers damages from non-collision events like fire, theft, or flooding.
• Specified Perils Coverage: Similar to comprehensive but only covers named perils, potentially costing less.
• Hired and Non-Owned Auto Insurance: Covers vehicles not owned by your business, such as personal cars used for business purposes.

Business vs. Personal Auto Insurance

While business and personal auto insurance are similar, business auto insurance is specifically for vehicles owned and used by your business. Personal auto insurance typically does not cover business use of a vehicle, and vice versa.

If you use a personal vehicle for business purposes, your personal policy may not cover you in case of an accident. Similarly, business auto insurance usually does not cover personal use of a business vehicle.

How to Know When You Need Business Auto Insurance

You need business auto insurance if your business owns, leases, or hires vehicles, or if you or your employees drive for work purposes. Here are some scenarios where business auto insurance is necessary:

• Your Business Owns, Leases, or Hires Vehicles: Any vehicles owned by your business should be insured under a business auto policy. This includes company cars, delivery trucks, specialized vehicles, and more.
• You Drive a Personal Vehicle for Business: If you use your personal vehicle for business purposes, consider adding business auto insurance. Personal auto policies generally do not cover business use.
• Your Employees Drive on the Job: Employees’ personal auto insurance may not cover accidents that occur while driving for work. A business auto policy can protect your business in such cases.

The Bottom Line

Not having business auto insurance when you need it could leave your business vulnerable to medical expenses and property damage from work-related accidents. A business auto policy covers your business-owned vehicles, personal vehicles used for business, and your employees, ensuring comprehensive protection.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We are here to assist you with the best solutions tailored to your requirements.

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