Commercial auto policy provides coverage for vehicles owned by or used as part of your business. Just like a personal auto coverage, commercial auto policy provides liability coverage for bodily injury or property damage and physical damage to your auto.  Moreover, if you own a repair engage in the business of sale storage or service of automobiles, such as repair shop or dealership, you will need a separate policy that will cover liability, physical damage as well as general liability protection for your car business.

There are cases in which a personal insurance policy may be sufficient.  Some carriers allow you to add a business endorsement to a personal  auto policy.  We will determine whether your auto fits the definition of commercial vehicle and will advise you whether a commercial insurance policy is needed in your case.

The following are some guidelines in determining if you need commercial auto insurance.

You need commercial auto insurance if…

A vehicle is used to deliver goods and/or people.

You or your business owns or leases one or more vehicles and your employees drive them for work purposes.

You require higher coverage limits than your personal policy allows.

You run a business as a sole proprietorship, a corporation, partnership, LLC, etc.

Multiple vehicles are used for artisan use.  Artisan use is typically identified as work in specialty fields such as interior decorator, electrical contractor, handyman, carpenter, painter, surveyor, landscaper, etc.

Work equipment is permanently attached to the vehicle.

There are more factors to consider before deciding whether a commercial insurance policy is necessary, including rules that are specific to each carrier.  

Federal and State Regulatory Standards…

Businesses with vehicles that cross state lines in the course of business may be subject to Department of Transportation (DOT) mandated financial requirements. The easiest way to comply with these requirements is to purchase insurance with mandated minimum limits and proper endorsements.  These regulations apply to both owned and non-owned vehicles. An insurance professional at SmartAssure will help determine if your business is in compliance with federally mandated financial requirements.