for ploughing snow or a single car to make business trips, the reality is
many businesses use the same vehicle for business and personal reasons.
But not all business use requires a commercial auto insurance policy. So
how do you know which you need?
Factors to Consider
Since every business is unique and each insurance company uses different
standards, it’s a good idea to consult a professional business insurance
agent. Some of the variables that can help you determine if your
business requires a commercial auto insurance policy include:
• Number of vehicles owned
• Who’s driving the vehicle(s)—if you need to list other employees as
drivers, you need commercial insurance
• How often the vehicle(s) is (are) used for commercial purposes—talk to
your agent about what's defined as “business use”
• Type and size of vehicle(s)
• Registration—if the vehicle(s) is (are) registered in the name of the
business, you need commercial insurance.
For example, you own a small dry-cleaning business and own two vans that
your employees use five days a week to pick up and drop off your
customers’ orders. You sometimes use the van to run errands or grab
lunch. They're primarily used for business purposes. The title of
both vans is in the name of your business.
So what do you think—does the dry-cleaning owner need personal or
commercial auto insurance? If you guessed commercial auto insurance, you
Safeguard Your Vehicles
Similar to personal auto insurance, a commercial auto policy will likely
include a combination of bodily injury, property damage, collision and
comprehensive coverage, including:
• Vehicle repair or replacement after an accident
• Damage caused by theft, vandalism or inclement weather
• Property damage expenses
• Injury or damage to others
• Medical bills.
Also, if your company’s vehicle is involved in an incident that causes
damage to someone’s property or gets in an accident with another car,
driver, passenger or pedestrian, commercial auto insurance would offset
Get Further Advice
to learn more.
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Wells Fargo & Company
Katie Ellis, 415-222-3767