Is Personal Auto Insurance Enough for Your Business?

{Sponsored} Sometimes operators of smaller greenhouses choose to obtain personal insurance coverage on the vehicles they use for business. The costs are lower and it seems like a great option. But is it?

The problems with using personal auto insurance for your business are numerous. When an issue arises, will you be covered?

You need to consider the costs related to an accident and if your personal auto insurance will cover business-related trips. The U.S. Department of Labor estimates that the average work-related crash costs $16,500 to employers. This figure can go all the way up to half a million dollars or even more if your business is responsible for a traffic accident that causes serious injuries or extensive property damage. How would this impact your bottom line?

What does commercial insurance cover that a personal policy probably doesn’t? For one, the amount of insurance coverage available on commercial plans can be much higher, coverage that may be needed if a vehicle is involved in a major accident.

Every vehicle titled to a business needs to be insured on a business auto policy rather than a personal policy. Personal policies aren’t designed to cover your trips delivering product or otherwise doing business. By utilizing a personal policy, you run the risk of not having adequate protection or even having no protection at all.

Depending on the coverage on your personal auto policy — which should be confirmed by your agent — these types of personally titled vehicles, when used as follows, might need to move to a business auto policy:

• Vehicles used to transport people or property for business purposes (such as making deliveries)
• Vehicles that travel to and between multiple job sites
• Trucks or vans heavier than insurable on your Personal Auto Policy
• Vehicles that must be registered with the USDOT

Navigating auto insurance coverage options for commercial vehicles isn’t easy. Contacting an expert is always the best option, especially considering all of the things commercial insurance will cover that personal will not.

The bottom line is this: your commercially used vehicles need commercial insurance appropriate to your business, your vehicle types, weights and usage, their radius of operations, the property or people transported, the drivers assigned to drive your vehicles and everything in between.

Hortica® property and casualty coverages are underwritten, and loss control services are provided, by Florists’ Mutual Insurance Company, Florists’ Insurance Company, and Florists’ Insurance Service, Inc., Edwardsville, IL, members of the Sentry Insurance Group. For more information, visit hortica.com. Policies, coverages, benefits and discounts are not available in all states. See policy for complete coverage details.

© 2018 Hortica

77-107                                                                                                 14002838 10/23/18