Insuring your work vehicles adequately is a sound business practice that considerably reduces risk. Unfortunately, some business owners erroneously believe that their own or their employees’ auto insurance provides coverage for work-related accidents. This misperception can expose them to significant risk. Therefore, it’s crucial to thoroughly understand when you need commercial vehicle coverage, such as when vehicles display company signage. If you own a business and want to understand your commercial insurance options better, our Phil Klein Insurance Group team is available to guide you. We are based in West Bloomfield, MI.
Distinguishing Between Business and Personal Vehicle Use
Michigan companies that use vehicles for business need to ensure they have the right insurance coverage. In addition to work trucks, a company’s vehicle must carry commercial vehicle insurance. Additionally, vehicles may also need coverage beyond a standard personal policy if any of the following apply:
- Transporting work-related goods
- Visiting a client or a job site
- Carrying work tools or equipment
- Transporting employees or clients
- Displaying business signage, either temporarily or permanently
If you or an employee carries out any of these actions and causes an accident, liability may fall on both the driver and your business. We often recommend acquiring Hired and Non-Owned Auto Insurance (HNOA) to safeguard your business in such situations. This kind of policy covers personal, leased, and rented vehicles used for business purposes. It’s also essential to remember that many individual auto policies specifically exclude coverage for vehicles displaying business signage. In such cases, a commercial vehicle policy becomes a necessity.
Collaborating with the Phil Klein Insurance Group
The Phil Klein Insurance Group caters to the personal and business insurance needs of business owners in the West Bloomfield, MI, area. Call us today at (248) 682-7445 to design an insurance plan that best protects your business and personal assets.
