Whether you drive for eight hours a day or you're just using the car for sales calls, commercial auto insurance has a lot to do with your overall protection on the road. Unfortunately, these policies aren't always clear until a policyholder makes a claim.
Here are three things that you may not fully understand about commercial auto insurance, so you're less likely to get caught by surprise.
Your Personal Vehicle May Need A Commercial Policy
If you use your personal vehicle for business purposes once in a while, you likely don't need a commercial auto insurance policy. However, if you let your employees use your personal vehicle during office hours, for instance, to run errands or visit a client, you may not be covered in the event of an accident. Because special circumstances pop up from time to time, you may want to be on the safe side and have a commercial policy that will cover you if someone else needs to use your vehicle.
Your Merchandise Matters
If you run a mid-sized shipping industry, then you already know how important it is to have your merchandise covered in the case of an accident. After all, the products in the back might be every bit as valuable as the truck. But there are plenty of business owners out there who won't update their coverage even if their merchandise changes. For example, let's say you ship one model of television to chain stores, but you acquire a second client along the way that ships a much more expensive model. Your coverage may need to be updated, so you can cover the inflated costs.
Every Commercial Auto Policy Is Different
No matter what your business is or who your carrier is, there are very few absolutes for commercial auto insurance. So even if the shop owner down the road was able to get certain things covered after an accident, that doesn't mean that you can. If you have questions about your commercial auto insurance or you're concerned about what will happen in certain scenarios, it's important to clarify the terms before assuming anything.
Commercial auto insurance can protect your livelihood in more ways than one. Rather than having to close up shop, you get the coverage you need to move on. Understanding the details can make it easier to anticipate what's coming down the road.