Commercial Car Insurance
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Selecting commercial car insurance coverage depends upon the specific business use, which particular vehicle is being used, and who is driving the automobile. The reason a person would want to have this protection is simply to limit liability in case of accident. One could be held personally liable for an accident; even when driving for business purposes. It does not have to be that persons fault, nor must there be any culpability in the situation. The law of the land is that people can bring a suit to court for any cause. There are a tremendous amount of cases that involve car accidents. Also, there are 3 sides to every case. There is the point of view of each of the drivers (or driver and pedestrian/bicyclist) and there is the view of the court or what the law says. The driver with commercial car insurance coverage may be in the right or in the wrong, but the point is, the person is covered no matter what. The uninsured motorist must, not only be in the right, but the motorist must prove it. And in many states, a motorist may still have culpability just because of lack of coverage.
There are insurers who consider transporting any goods for a fee as business-use of a vehicle and therefore; the driver needs commercial car insurance. Simply delivering newspapers or pizzas, offering services at home such as; nursing care, auto detailing, landscaping, or pool cleaning would all qualify under this definition. Just because a person is employed by someone else in a driving job, the risk of that individual being in a situation where he or she is likely to meet with harm is not reduced by any degree. It makes good sense to utilize a person's driving history as an indicator of the level of risk a company would be charged with assuming. Even with a spotless driving record, a driver is actually more vulnerable to claims of liability when driving for someone else, because public perception is that companies have deeper pockets than individuals. In general, this statement is somewhat true. However, not all companies have large amounts of assets and thusly; when employing someone to drive should maintain good commercial coverage.
Some companies who offer delivery or in-home services, and employ other people to perform them, will have a commercial car insurance policy that covers anyone who drives for the purpose of doing the job. They simply add the person and the vehicle to existing commercial coverage. These services could be performed using a person's own vehicle or that which belongs to the company which employs them. When the company owns the vehicle, it's a necessity to provide this coverage for their own protection. But if the employee is using a personally owned vehicle and the company does not offer this coverage, it is wise for one to cover themselves by purchasing a personal policy. If in fact, an individual does need commercial coverage, it may be possible to add a "business-use" rider to an existing personal vehicle policy.
When a person contacts an agent to inquire about commercial car insurance, the first question that needs to be asked is, "what is the insurer's definition of "commercial use?" Once it is established that a person cannot use a business-use add-on and must purchase a commercial policy, the amount of coverage becomes an instant priority. There are legal limits on coverage, but there are also practical considerations. If the legal limits do not offer the amount of protection needed, then it is imperative that an individual consider additional amounts of coverage. Additional liability insurance is also needed if equipment or tools are being hauled or a trailer is attached to the vehicle. A good commercial car insurance agent will be able to point out the legally required coverages as well as the add-ons that are best for the type of business being operated. "And that we should bring the firstfruits of our dough, and our offerings, and the fruit of all manner of trees, of wine and of oil, unto the priests, to the chambers of the house of our God; and the tithes of our ground unto the Levites, that the same Levites might have the tithes in all the cities of our tillage."(Nehemiah 10:37)
In addition to coverage for business use, there is the reality of non-business use of a business vehicle. Be sure to look into this aspect of insurance coverage if the company owns a fleet of vehicles or pays the lease on a company vehicle that is in the possession of an employee. As part and parcel of a commercial car insurance plan, accommodations for running personal errands, transporting other people, and taking a vehicle to a personal residence should all be discussed and either accepted or excepted. If the company chooses not to cover non-business use of a business vehicle, yet allows an individual to domicile the vehicle at their personal residence, then the person should understand that they are liable for anything that happens that is not business related. This situation opens up an individual to personal responsibility and therefore; one should truly consider adding coverage for the vehicle for personal use. Even if one does not intend to routinely use the automobile, it's always better to be safe than sorry.
The bottom line is that insurance coverage is a must when a company employs people to drive for them. A wise person will want to limit risks and liabilities when using a personal vehicle for business purposes. Choosing the appropriate type and amount of coverage depends upon what the vehicle will be used for, whether the vehicle being used belongs to the company or an individual, and the driving record of the individual behind the wheel. The reason anyone gets insurance is to protect their interest. Commercial car insurance is no different.
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