If you haven’t taken the necessary steps to insure your business vehicle, the time to remedy this particular misstep is now. When attempting to protect a business, it’s imperative to register an automobile in the name of the corporation or LLC. Taking the following points into consideration will help you gain the proper auto insurance policy for your company vehicle.
First off, one must consider the actual nature of the business, as well as the manner in which the company vehicle will be used. Are you going to be making deliveries all across town? Perhaps matters require that you transport yourself, and possibly others, in a luxury vehicle. All of these questions need to be taken into consideration prior to obtaining the proper auto insurance because separate sorts of vehicles warrant drastically different forms of insurance. A box truck will require a particular policy, while your company Audi A7 will garner an entirely separate quote. Be prepared with this information prior to dialing up your trusted business insurance agent.
Your insurance agent is going to be interested in whether or not you will be hauling any freight within the company vehicle. What are you carrying, and how far is it going? A number of these factors will all play into the final insurance policy. Additionally, a vehicle carrying hazardous or extremely valuable items will justly require that a specific set of riders be added to the policy.
Human cargo will also force a more in-depth form of coverage, and those transporting people will be required to meet a separate set of guidelines. It’s possible that a limousine company, for instance, will be forced to explicitly outline which type of passengers they’ll be catering to, and why. Also, all company drivers may need to pass a screening process before an insurance agency will feel comfortable presenting an appropriate insurance package.
Though it may seem obvious, one final point bears mentioning. The best way to protect your business is not only to set up a LLC or corporation, but to register an auto in the name of the LLC or corporation and actually use that auto while performing work. Many people set up a LLC or corporation for their business only to completely circumvent that protection when they drive around performing work in an auto that they personally own. Think of it this way, an auto accident while performing business is more likely to occur than a lawsuit for other work endeavors. Another important need to know is that any injured party in an auto accident is going to sue the owner of the vehicle. If you are driving a personal vehicle, you have completely exposed those personal assets you were trying so desperately to protect in the first place.
The next step in the business auto insurance process should be clear. It’s now time to contact a reputable agent to handle your business insurance and auto insurance needs. Nicholas / Tobin Insurance will be happy to answer your questions and help you find the right coverage!