Your auto insurance is a personal thing and as such, it may or may not cover you if you use your car in your business.  Generally, a personal auto insurance policy won’t cover damage to your vehicle if it’s being used for business purposes.

“But,” you say, “My policy has ‘business-use’ coverage.”  Be sure to check on that.  How you define “business use” and how your insurance company defines “business use” may not be the same thing.  You may find yourself a bit short if, or when, an accident happens.  This may especially be the case if your liability limits aren’t high enough to cover the damage.  Make sure you’re protected.  The best way to go about that is to check with your agent.

See that you are not only covered for business use, but how the policy defines business use.  Ensure that there is no miscommunication between you and the insurance company and make sure that what you think is going on is really what the policy says.

In addition, it isn’t a simple matter of liability, though that could be a very expensive proposition.  There may also be some savings in overall insurance costs for you and your family by pursuing. Find a good agent who has other commercial clients and sit down for a review of your situation.

The following are some questions that you can ask either your insurance agent or a representative of the insurance company.

How does your company define “commercial use?”  Each insurer may have a different idea.  Some may simply define it as transporting goods for a fee, which could include pizza and paper delivery or catering.  Another company may include consulting services, landscaping or snowplowing.  Others may include day care or church van services.  There may even be a case where real estate agents may qualify.  If you fall into any one of these categories, you should talk to someone about a commercial auto policy.

What are the liability limits of my current policy?  A commercial policy should offer higher liability limits – much higher limits in most cases.  Larger vehicles, like delivery vans and trucks, can cause more damage than a passenger car and your policy should reflect that.  Your current policy probably doesn’t have sufficient liability protection.

Does my personal policy cover me for business specific issues?  Take, for example, the case of using a trailer to haul rental canoes.  If you use a trailer that damages another car when on a job, a personal liability policy won’t cover the repairs.  A commercial policy should do that nicely.

If someone else drives my vehicle for work purposes – for example, running a business errand, delivering goods or traveling to a meeting – are they covered?  In general, if someone else drives your vehicles for work, you’ll need a commercial policy that covers multiple drivers.

You also need of a commercial auto policy if your vehicle hauls tools or equipment that weigh more than 500 pounds.  In addition, if your vehicle makes deliveries, you’ll need a commercial policy.  Finally, if your vehicle – usually a truck – requires filings for interstate for-hire trucking business, you’ll need a commercial auto policy.

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