If you’re running your own business; it’s essential that you have the right insurance to properly cover you regardless of what happens. Not only does this include protecting the physical building you operate out of, but the tools you use as well. Many can assume that when your business uses expensive machines or equipment to complete daily tasks, you need to insure them so if they break down to halt business, you’re protected. But what some business owners may overlook is their Auto Insurance, as they may not know where to draw the line between a personal and company vehicle. Specifically, whether their Personal Auto Insurance is sufficient, or if they do in fact need a Commercial Auto Insurance policy.

Why Do I Need Auto Insurance?

A lot of individuals decide to purchase insurance when they want to not only protect themselves and their families but their finances as well. This stems from the fact that when you buy an insurance policy, you are buying financial protection so if something that is outlined in your agreement happens, most if not all of the costs will be covered. For example, many homeowners buy Home Insurance to protect their property from damage so if a small kitchen fire or leaky pipe damages your belongings and it is within your clause for the repairs to be covered, your insurance provider will cover a specified amount. But in regards to Auto Insurance, it’s something that every Ontario driver must have to operate their vehicle as it protects the driver in the event of a claim if there is damage caused to the vehicle or to a third party. Depending on how you are using your car, the type of coverage you will need can change. As the Ontario Provincial Police (OPP) reported that in 2017 they responded to 68,794 collisions, it’s crucial that every driver takes the time to ensure that their insurance fits both their personal and business needs.

How Do Commercial And Personal Policies Differ?

Many question how exactly Commercial Auto Insurance is different from Personal coverage, and the main variance to note, is how the protection you need will change depending on what the vehicle is being used for. Specifically, whether it’s for personal or business use. Surrounding the fact that if you are using your car for business purposes, you will need more coverage as the insurance will need to protect a business. Commercial and personal policies also differ in regards to the amount of driving someone is doing and the type of cargo that may be in the vehicle. If you are driving your vehicle back and forth to work, to visit friends and family, or driving to the occasional meeting, you will likely have enough coverage under a Personal Car Insurance policy. However, if you find yourself driving more for work purposes or carrying work-related cargo, you may need additional coverage as Personal Auto Insurance often does not cover theft if items are stolen from your vehicle unless they are permanently attached, (such as built-in GPS or sound systems) and is previously discussed in your policy.

Why Do You Need Commercial Insurance?

Sometimes, drivers assume that their Personal Auto Insurance will cover them if they begin using their car for business purposes, but it’s strongly recommended that you confirm with your insurance broker before driving so you will, in fact, be covered if an accident occurs. You may find yourself needing Commercial Auto Insurance if you find yourself;

  • Driving between locations with expensive tools or equipment,
  • Delivering goods or materials,
  • Using your vehicle for driver training, or
  • Transporting customers to varying locations.

This stemming from how you will need extra coverage to cover not only yourself but your business and your employees if someone is injured, expensive materials are damaged or stolen, if wages are lost if the vehicle is inoperable, or if a lawsuit is made against your business.

Where To Get It?

The first step to being adequately covered is to speak with your Cambridge Insurance broker about what your current insurance includes and informing them about what your daily driving habits involve. While you may not think that you need Commercial Auto Insurance, your broker may notify you that it is in fact, the wiser coverage option to have as without it, you could be responsible for the financial implications if you’re involved in an accident, if items are damaged or lost, if your vehicle causes you to lose business or if your car is involved in an injury. But regardless of why you may think you need coverage, we’re confident that we have the right plan to fit the needs of yourself, and your business.