So, You Work Out of Your Home, do you?
Guess what? You still may need commercial auto insurance!
If you are one of the many people who believe a home-based business does not have the same car insurance requirements that conventional businesses do, you may be setting yourself up for financial disaster.
How, you ask?
Let's take the example of Phil Goodman, for explanation sake.
Phil Goodman lives in Toms River, NJ. Working out of his own small home kitchen, he cooks great meals that he sells to the public. For an added sales incentive, Phil offers free delivery to local customers, as well as those in the neighboring Beachwood, Lakewood, Point Pleasant, Howell, Freehold, Asbury Park and Long Branch.
Things go smoothly enough as the part-time guy Phil hired to drive his personal van doesn't get into trouble. The problem, however, arises once there's a vehicular accident that he is liable for. When that unfortunate but unavoidable situation occurs, Phil's claim with his personal automobile insurance may very likely be denied. The reason? His policy does not include business driving coverage!
The Main Difference Between Personal Car and Commercial Car Insurance
There are several differences between personal auto and commercial auto insurance. The core difference, however, lies in the extent of protection. Commercial car insurance has a much wider range of coverage simply because of the larger liability risks that is inherent to the business world.
When Do You Need Commercial Auto Insurance?
You may need it if your vehicle is
- Owned or leased by a corporation or partnership
- Titled or registered to a business, corporation, partnership or DBA
- Driven by employees or non-listed drivers
- Leased or rented to others
- A van, pickup or utility vehicle more than 10,000 pounds or over a 2,000 pound rated load capacity
- Equipped with cooking or catering apparatus, bathrooms, modified suspensions, hydraulic lifts, snowplowing features or racing gear
- Outfitted with ladder racks or permanent toolboxes that are for business utilization
- Used to deliver or pick up goods, such as supplies, materials, magazines and newspapers or food stuff
Protect Yourself with the Right Coverage.
If you are a small business owner working out of home, you may need broader protection than you thought. Speaking to an experienced independent insurance agency that deals with a network of leading insurance companies and is bent on providing tailored coverage will give you an edge into knowing your requirements, while presenting you with the most options of coverage as well as price.