Does my car insurance cover me when I drive for business?
The 2016 United States Small Business Profile Report indicated that 99.7% of businesses in America are Small Businesses. However, many business owners do not classify their vehicles correctly as for Business Use or do not purchase Commercial Auto insurance. This can lead to non-claims, i.e. claims that are not paid out.
Are you protected?
The following information is a general guideline as to the type of auto insurance associated with vehicle usage; speak with a trusted insurance adviser in order to confirm that you are protected.
Personal Auto Policy with Commute Designation
Commuting to work
Car is used for Lyft or Uber - as long as you have a Ride Share Endorsement on your policy
Share-the-expense car pool
Vehicles used on Farm or Ranch. Insurers may offer 'Farm' classification
Personal Auto Policy with Business Designation
Real Estate Agents, Interior Designers, Lawyers, Doctors, Accountants, etc. visiting multiple locations, especially when transporting goods or clients
Sales or service representatives or for consumer-oriented direct home sales
Business Owners used in a business for occasional errands
Not used to transport explosives, chemicals, flammable materials, or more than 500 pounds of supplies or equipment
Commercial Auto Insurance Policy
Vehicle titled in a business name
Commercial Vehicles such as 18 Wheelers & Box Trucks
Contractors that transport employees & goods to worksites
Vehicle used by an employee for business operations not listed on the policy
If you read your car insurance policy jacket carefully, you may find language similar to that of A.7. Exclusion found in the Insurance Services Office, Inc. Personal Auto Policy Form, PP 00 01 01 05:
Maintaining or using any vehicle while that "insured" is employed or otherwise engaged in any "business"...
Contact a Fenix Risk Management Adviser for a discussion about the appropriate auto insurance coverage for your cars.
Mercury Insurance, founded in 1962, has insured millions of Americans with Auto & Homeowners insurance. Mercury was named one of the most trustworthy financial companies by Forbes Magazine in 2016.
Fenix Risk Management is an independent insurance agency proudly serving families & businesses in Georgia, Alabama, North Carolina, South Carolina, Tennessee, and Florida.
Simmy is an adviser at Fenix Risk Management.
Note: the opinions expressed in this blog are that of the author, not of any other individual or organization referenced.