Dangers of a Personal Auto on a Business Policy
While It is true that using a vehicle for business while insured on a personal policy could potentially void all coverage, there are also pitfalls insuring your personally owned and titled vehicle on your business policy. Consider the following:
- If a vehicle is NOT titled in the company name, but the insurance coverage is in the business name, coverage can be denied. This includes both physical damage AND liability protection for you or others.
- No-fault personal injury protection may not be included.
- Coverage may not extend to other drivers
- Liability protection might not follow you when driving vehicles other than your own the way a personal policy does. This can apply both when you borrow and rent a vehicle.
Depending on your specific situation, there are various ways to make sure you are not left financially vulnerable. The insurance professionals at Cobb-Hall may recommend one or more of the following:
- Endorsements to your business policy are available to close gaps between business and personal insurance policies. These include “drive other car” and “hired and non-owned”.
- It is best for family members in your household to have a personal policy instead of adding their car to the business policy.
- Often a personal insurance policy, with multi-policy discounts, is more cost effective.
- Many times legal gaps can be avoided by contracts and leasebacks. A professional can provide the needed forms to sign.
Contact Cobb-Hall to help you with determine the best solution for you.