Should I Have Commercial Insurance For My Car?

No one wants to find out after they have totaled their SUV that it is not covered by their insurance policy.

This was the case highlighted in a recent CTV news article, sent to me by one of the participants in my Legal Essentials course.  The headline was “Business owner’s occasional deliveries voids her insurance policy for wrecked car” .

The scary question for small business owners after reading such a story is – Should I have commercial insurance for my vehicle that I use in my business?

Here are my tips below:

Tip #1 – This is a conversation that you need to have with your insurance broker or insurance company. Confirm and document all such conversations in writing including what details you provided and what they said.

Tip #2 – Vehicles that are owned and registered to a company need Commercial Automobile Insurance.

Vehicles that are personally owned but used in the business may or may not need commercial coverage, depending on whether the business use is acceptable to the insurance company. Provide details and get confirmation in writing. It is safer and perhaps not much more expensive (if any) to get commercial coverage for your personal vehicle.

Tip #3 – If your employees use their personal vehicles to go to the post office, make deliveries etc., talk to your insurance broker about whether you need Non-Owned Automobile Liability coverage.

Tip #4 – Talk to your insurance broker or insurance company on a regular basis to make sure that any changes in your business are properly reflected in your insurance coverage.