Having the right kind of automobile insurance is important to insure you have the appropriate coverage in the event of a claim. If your vehicle is used for business purposes, then commercial auto insurance is the right type of insurance for you.
Commercial Auto insurance is similar to personal auto insurance and includes liability, medical payments, uninsured/underinsured motorists, comprehensive and collision coverage. However, the commercial auto insurance policy is designed to specifically cover loss or damage when using the vehicle for your business.
7 Ways to Know When To Purchase Ohio Commercial Auto Insurance
- When you use your vehicle to transport food, people or merchandise and are paid for the transport services (insurance companies are changing their guidelines on this daily. So ask if there's an endorsement available for your personal auto policy that takes care of this).
- When the vehicle is owned by a corporation
- When the vehicle requires special coverage, such as coverage to tow a trailer for business purposes
- When the vehicle is driven by an employee or shared among multiple employees
- When it's got graphics or signage plastered all over it advertising your business
- When you buy a vehicle that is not a "private passenger" auto. Some vehicles, by their very nature, are NOT private passenger vehicles and therefore can't be covered on a personal auto policy. A dump truck is a perfect example- we have some customers who have a dump truck for their own use. But it's classified as a commercial vehicle, so it's insured on a commercial auto policy.
- When it's used in any way for ongoing business operations. The examples here are plentiful- contractors picking up materials & taking to jobsites and hauling their equipment. Another example includes a repairman driving to customers houses.
The bottom line is that any vehicle used for commercial purposes, large or small, regardless of the number of drivers, should be insured commercially (again there have been some changes in ridesharing and meal delivery services. Check with your company)
Even the small business owner with an automobile registered in his personal name does not want to worry that a claim won't be covered because of business use. For a small difference in premium, it is worth it to have exactly the coverage you need to protect you and your business.
What About Cost?
Speaking of cost, most people automatically think that commercial auto insurance equals HUGE premium. Not true. We have an excellent commercial auto insurance policy from Erie Insurance and for a small operation, we've had many situations where the premium was actually LESS than a personal auto policy. Our latest accounts, a lawn care contractor and masonry contractor, consist of 1 and 2 man operations. And it was VERY affordable for them. So don't fall into the trap of thinking "Oh, it's going to be so expensive!" It depends on how big your operation is and what work you're doing, but it's not unmanageable.
Commercial auto policies contain specialized coverage options appropriate for business. Non-owned auto coverage, an optional coverage, can even protect your exposure to loss by your employee's use of a personal vehicle when used for company business, as well as provide coverage for vehicles not owned by the company when under company use.
Concerned you may not have the right Ohio auto insurance coverage? Don't wait until a claim happens- by then it's too late! Call us or request your commercial auto insurance quote online NOW.