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If you are a small business owner you may find yourself wondering about the need to carry commercial insurance for your automobile.  Many self-employed small business owners assume they don't need commercial auto coverage if they are using their personal car, particularly if the business is home-based. However, if you are using your vehicle for commercial purposes, your personal policy may not provide coverage.

Here's five things you should know:

1. How can I determine whether I need Edinburg auto insurance for my small business?

Most insurance companies categorize businesses as to whether they are privately owned, whether they are partnerships or sole proprietorships, and the number of employees. Categories are also industry specific. If you operate a towing company, it is clear that you need auto insurance. The same is true if you regularly transport clients as a real estate agent. But what if you operate a family retail operation that involves sales limited to a single building or location? Although less clear-cut, if your vehicle is being used in any way in the course of your business or to support your business, you need business auto insurance.

2. Do I need auto insurance if I work from home?

If you never leave home on business and never use a vehicle for anything business-related, you may not need business auto insurance. But the vast majority of home businesses use a vehicle for business use, at least occasionally. If you are using your vehicle for anything other than commuting, you may need commercial insurance.  If you sell a home-based retail product, for example, home cleaning products or cosmetics, and you are driving around making deliveries, someone may break into your car and steal everything. Theft of contents of a vehicle falls under your home insurance policy and if you do not carry business insurance for your home, the loss may not be covered. Commercial auto insurance can help you insure both the vehicle and its business-related contents.

3. What about employees using my vehicle?

Any time you have employees using a vehicle on behalf of your company, you increase the potential risk to your business. If they have an accident while on a job-related errand, your insurance record will be impacted. If you use your business name for the vehicle title, then you must use commercial insurance. The good thing is that commercial auto insurance is more extensive and often includes business interruption coverage, which can reimburse you for things like lost employee income.

4. It's a family business. My kids are driving.

It doesn't matter who is driving the vehicle. If it is being used for business purposes, you are taking on additional liability. If your son is transporting goods and has an accident, not only would you have a personal worry, but your business would be impacted and you could stand to lose your livelihood.

5. Employer non-owned auto coverage.

Situations may arise where your employees use their own vehicles for purposes related to your business. If this is occurring with any regularity, you may need extra insurance to provide coverage not only for employees, but for occasions when your business may need to use vehicles it doesn't own - for example, you borrow a friend's truck to make a delivery.

Each small business is unique, and the requirements for auto insurance can vary. Many small business owners take the perspective that it's better to spend a little extra on a commercial premium rather than take the risk of having the health and viability of their business compromised by an unexpected accident. Whether you have one vehicle or a fleet, whether you drive only occasionally or every day, not carrying auto business insurance could place your small business in jeopardy. You work hard to build up your business, and it's important to protect your investment.

If you are a small business owner and unsure whether you need business auto coverage or whether you have the right coverage, contact Raymond Longoria Insurance at 1-888-296-0345.
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Raymond Longoria Insurance
2025 N Conway Ave
Mission, TX 78572
Phone: (956) 581-1034
Toll-Free: (888) 296-0345