Business Vehicle Use: What Is Covered?

​Business drivers may be at a larger risk than personal drivers since they are more likely to be involved in workplace accidents. Consequently, it necessitates additional protection from their employers through professional liability insurance.

Almost every state requires personal auto insurance. However, your policy may not cover losses caused by incidents when you or your employees use your vehicle for work. Most states require small business owners to insure their company-owned vehicles with commercial auto insurance.

Fact: Business Drivers Have A Higher Risk Than Personal Drivers
Since business drivers are on the road more regularly than other motorists, insurers consider them higher-risk drivers. A consultant who travels to numerous client offices each week is more likely to be involved in an accident. 

Your firm will almost certainly need commercial auto insurance if you or your workers drive company-owned automobiles. You may also need hired and non-owned auto insurance if you use your vehicle for business reasons such as chores, deliveries, or client meetings (HNOA).

When determining driver risk, insurance companies analyze several factors such as:

• Age
• Mileage
• Driving Record
• Profession
• Geographic location
• Vehicle Size
• Owner of the vehicle

The Difference Between Personal Auto, Commercial Auto, Hired, And Non-Owned Auto Insurance
Almost all states mandate personal liability auto insurance. If you cause a collision in your vehicle, it covers the price of repairs to other drivers' cars or other property. It also covers hospital bills incurred as a result of third-party injuries.

Commercial auto insurance safeguards your organization against the financial consequences of incidents involving company-owned vehicles. It is often needed by state law, and it can be acquired as vehicle liability coverage alone or with collision and comprehensive coverage. It protects your employees who can use the corporate car with your consent.

Hired And Non-Owned Auto Coverage: How Does It Work?
You should consider an HNOA policy if you or your employees use your automobiles for any of the following reasons:

• Running errands for a business
• Visits to client sites
• Delivering packages
• Purchasing supplies
• Transport individuals or products for a fee
• Transport tools and equipment

Conclusion
Despite the changes to business use, there are still a few instances where it is covered. If you're not sure whether or not your specific use is allowed, check with an insurance agent. And remember, even if business use is no longer covered under your policy, personal liability coverage may still protect you in case of accidents or injuries while on the job.

At Appletree Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (603) 881-9900 or Click Here to request a free quote. The coverage discussed in this article is not guaranteed. Please call our agents, we are happy to help you learn more about your plan and make sure you have the coverage you need.