My business is running really slow this year. I am thinking if I still need to get insurances for my car I used for deliveries. How can a commercial vehicle insurance policy protect my car?

Michael

Meza, AZ

The first thing to do before shopping around for an insurance policy is to consider the size of the business.

If you are an entrepreneur with no employees and use your personal vehicle to drive yourself around for errands then a personal vehicle policy will be more than enough to meet your needs.

However, if you have a company that relies heavily on transportation to sustain its operations, then a commercial vehicle insurance policy is necessary to provide the adequate amount of security and protection.

Next, companies should also look into employees who use their own vehicles to run business-related errands. Management must ensure that these employees have their own personal vehicle policies that have policies carry sufficient liability coverage to prevent the company from footing the bill for these unfortunate occurrences. In the absence of personal auto policies, the company can opt for a drive other car policy, which is recommended for corporations or joint ventures.

If, for example, the employee figures into an accident with another driver and this driver opted to press charges against the driver and the business owner, the company must have a commercial vehicle insurance policy with an additional non-owned auto liability endorsement in order to protect its assets.