As a business owner, you need the same kinds of insurance coverages for the car you use in your business as you do for a car used for personal travel -- liability, collision and comprehensive, medical payments (known as personal injury protection in some states) and coverage for uninsured motorists. In fact, many business people use the same vehicle for both business and pleasure. If the vehicle is owned by the business, make sure the name of the business appears on the policy as the "principal insured" rather than your name. This will avoid possible confusion in the event that you need to file a claim or a claim is filed against you.
Whether you need to buy a business auto insurance policy will depend on the kind of driving you do. A good insurance agent will ask you many details about how you use vehicles in your business, who will be driving them and whether employees, if you have them, are likely to be driving their own cars for your business.
While the major coverages are the same, a business auto policy differs from a personal auto policy in many technical respects. Ask your insurance agent to explain all the differences and options.
General liability insurance
This covers legal actions due to accidents at the business, injuries that may be sustained and claims of negligence. Any type of business can fall victim to an on-the-job accident, no matter what type of precautions it has in place. In this scenario, general liability insurance could be a major factor in protecting a company's assets.
Commercial property insurance
This protects businesses in the event of damage to their property caused by fire, vandalism and storm damage. The definition of "property" is usually pretty broad in this case; it can cover the building where the business is located, equipment used in the business's operation or lost income caused by damage to property. Consider if you have any of these types of property that need coverage:
- Buildings or other structures (owned and/or leased)
- Furniture and equipment (owned and/or leased)
- Inventory, money and securities
- Machinery and boilers
- Computers and other electronics/media
- Papers documents
- Outdoor signage
- Mobile property and vehicles
Worker’s compensation insurance
An accident in the workplace can cost you a lot of money. It will require you to pay all medical bills and lost wages, or face a lawsuit by a begrudged injured employee. Worker’s comp can cover these situations, saving you the expenses of work accidents.