If you own an auto for use in your business, you will need a Business Auto Policy. In most cases Small Business will have both private passenger auto and commercial auto exposures. Business Auto Policies for this exposure are freely written as long as driver’s records are acceptable.
Get this right up front – hire good drivers and monitor their records.
Do NOT rely on your personal auto policy to cover this exposure! Check with your insurance company. Some “Personal Auto” policies just will not cover this exposure.
Auto Liability: Buy high limits of auto liability coverage. Think of $1Million as a practical minimum. That follows for Un Insured motorist limits as well.
Physical damage: Unless required by a secured party, this coverage is a matter of your tolerance for risk and your ability to pay un insured losses.
Non Owned / Hired Autos:
The hidden and sometimes overlooked risk arises from your employees using their personal autos in your business. If employees use their own autos in your business, YOU are responsible for accidents that may occur.
Non Owned Auto Liability: Buy high limits of liability, again, think of $1,000,000 as a practical minimum
Hired Auto Liability: If you ever have occasion to rent an auto, this is where you get liability coverage. Again, buy high limits of liability, again, think of $1,000,000 as a practical minimum
All driver’s records should be carefully screened at hire and on an annual basis going forward. Every employee should provide a copy of their personal auto policy EACH year.