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Understanding Business Auto Insurance

What Is Business Auto Insurance?

Business auto insurance covers liability and damages for vehicles owned by your business or driven as part of your business operations. It is similar to personal auto insurance but is designed to protect your business vehicles and assets.

Business vs. Personal Auto Insurance

While business and personal auto insurance are similar, the key difference is that business auto insurance is for vehicles owned and used in business. Any vehicle owned or regularly used by your business should be covered by a business auto policy.

How to Know When You Need Business Auto Insurance

If your business owns company cars, delivery trucks, or specialized vehicles, you need business auto insurance. Additionally, if you frequently use your personal vehicle for business purposes, you may want to consider a business auto policy that covers your business-related vehicle use.

What Does Business Auto Insurance Cover?

Business auto policies cover cars, trucks, trailers, and other vehicles your business owns. Optionally, it can also cover vehicles your business leases or rents, as well as vehicles owned by others that are driven for business purposes.

Types of Coverage

• Liability Coverage: Covers bodily injury and property damage resulting from an accident.
• Collision Coverage: Covers damage from a collision or vehicle overturning.
• Comprehensive Coverage: Covers damages from non-collision events like fire, theft, or flooding.
• Specified Perils Coverage: Covers specific perils named in the policy.
• Hired and Non-Owned Auto Insurance: Covers vehicles not owned by your business but used for business purposes.

When to Consider Business Auto Insurance

You need business auto insurance when your business owns and operates vehicles, and whenever you or your employees drive on the job. Here are a few scenarios where adding a business auto policy makes sense:

Your Business Owns, Leases, or Hires Vehicles

Any vehicles your business owns should be insured under a business auto insurance policy. This includes company cars, delivery trucks, specialized vehicles, and more.

You Drive a Personal Vehicle for Business

If you regularly drive your personal car for work, you may want to discuss adding business auto insurance with your insurance provider. Personal auto policies typically do not cover business use of your vehicle.

Your Employees Drive on the Job

Your employees’ personal auto insurance may not cover accidents that happen while driving on the job. A business auto policy can cover your employees when they use their own vehicles for work-related tasks.

The Bottom Line

Not having business auto insurance when you need it could leave you and your business liable for medical expenses and property damage in the event of a work-related accident. Adding a business auto policy covers your business-owned vehicles, personal vehicle, and employees, ensuring that driving on the job doesn’t leave anyone exposed.

For any mortgage service needs, contact O1ne Mortgage at 213-732-3074. We are here to help you with all your mortgage requirements.

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