If you only own one vehicle as part of your business or if you use your personal vehicle for your company, you may not think about purchasing a business policy for car insurance in Salt Lake City. However, you could be putting your business at risk if you don’t evaluate your needs for auto insurance.
Pay for Damages
Personal car insurance policies have limitations when the vehicle is used for business purposes. While some policies will pay out on certain claims, the amount may not be enough. If the other person sues you for additional money, you put your business at risk.
Depending on the severity of injuries and damages, you could end up with an expensive lawsuit. With the right policy, you won’t have to worry about money coming out of your pockets for damages.
Cover Your Employees
Many times, employees use personal vehicles for company business. They may go to the bank to make a deposit or stop by the office supply store for paper. If they are in an accident during that time, their car insurance may not cover all of the damages. That will put your company at a liability unless you have insurance with the proper coverage to pay for this situation.
If your employees make deliveries in their cars or transport customers, you may be required to provide coverage since their insurance may have exclusions. It pays to talk to your insurance agent to make sure you have the coverage you need for employees who use their own vehicles for work.
Protect Important Equipment
Personal auto insurance often has limits on what additional items within the vehicle are covered. For example, you may have very little coverage on a personal policy if you have electronics installed in your vehicle. You could be out a lot of money if they are stolen or damaged and need to be replaced.
Understand the Differences in Business and Personal Auto Insurance
Before you sign up for a policy, find out the details about your coverage. If you use your vehicle for both business and personal use, you may need to have additional coverage for when your family members are driving the car. You will want to make it clear to your agent that you are purchasing insurance for both personal and business use. That way, you don’t risk having incomplete coverage.
As your business grows, your needs for car insurance will also change. You should compare policies and discuss any changes in your transportation needs with your agent to ensure adequate coverage. You never want to put you or your business at risk by having inadequate coverage.
For small businesses, including those with you as the only employee, you want to make sure you have the coverage you need. If you are unsure whether you need business car insurance or a personal policy, let your agent know the nature of your business and how you use your vehicle to determine what policy and coverage limits best suit your needs.