In recent times, personal and business auto insurance have begun complementing each other. Many personal policies cover business use, and business policies cover personal use, both to a limited extent. Despite the receding line of distinction, both auto insurance types still offer protection for the parties they were designed to cover.
A business auto insurance is a separate policy from a business owner’s policy (BOP). The former is designed to cover a vehicle primarily used for work. This type of insurance features the same coverage as your personal auto insurance: bodily injury liability, collision coverage, and medical payments, among others.
While both types of insurance may protect both driver and property at the same time, the coverage of a personal auto insurance may be highly inadequate for the expenses arising from a business trip accident. For example, a pickup truck belonging to a roofing company primarily used for carrying tools to the site may not be protected by personal auto insurance.
Meanwhile, an accident that happens while you’re on your way to another location for a meeting could merit you compensation for your injuries and damage to the car through your personal insurance policy. If your business is sued for claims by another party, however, it cannot get protection from this type of policy.
Business auto insurance still holds a number of unique features such as employer protection. In the event of an accident, the employer could be held accountable for the employee’s mistakes. While the employee is covered by his personal auto insurance, the employer isn’t. In the worst-case scenario, the business may end up billing its own employee for the damages.
In this regard, Decatur, GA auto insurance companies like Focus Insurance Group recommend getting business auto insurance for their fleet. Assuming the employee at fault carries personal auto insurance, the employee’s and the business’ policies can protect both from damages.
If insuring an entire business fleet isn’t feasible, employers can fund the deductible on personal auto insurance, or pay for mileage accrued on business use ($0.575 per mile, beginning January 1, 2015). The latter is recommended by many insurance experts since the former may prove contentious when questions regarding the nature of a vehicle’s use (whether personal or business) arises.
Overall, Decatur, GA business insurance is still the better option over personal insurance, for cars especially used for business. As an employer, this type of policy will protect you from most financial liability involving the use of your company vehicles. Even with the most careful employee in the world, road mishaps can happen without warning.
(Source: Business Vehicle Insurance, Insurance Information Institute)