An insurance agency in Grafton MA offers business and consumer vehicle coverage, and they are both very different. Personal car insurance policies will not cover business vehicles. If the car was written off in the tax records, it must be covered for under the business name. Furthermore, if there is a vehicle accident, and the driver was doing business, the personal policy may fail to come through. Business car coverage must be found for every vehicle- no matter who is driving.
There are a few gray areas when it comes to business coverage for a vehicle. There are times where the business may use a vehicle while still keeping it in a personal policy. There are three main questions that will help gauge how the policy should be dictated.
What is the vehicle specifically used for?
The answer is likely more complicated than “transportation,” though it does not have to be. If the vehicle is used to go from one meeting to another solely, it could qualify for personal insurance coverage. On the other hand, the vehicle could be used for:
* Transporting product
* Transporting clients
* Hauling a trailer that stores work-related items
* Making deliveries
Any exception could also be made to the above rule if the workplace is very far, or if the driver is traveling over 2,000 miles a month. This number is not set in stone. Speak with an Insurance Agency in Grafton MA for more specifics.
Does an employee use a vehicle?
If another driver, specifically an employee, sues the vehicle, it must be covered under business insurance. There is very little variability here though non-employees can be added as a secondary driver.
What would happen if the car was incapacitated?
This is possibly the biggest question when the coverage is on the line. If the car was out of commission, could the business efficiently continue on? If no, perhaps the answer lies in the ruling. Could the company survive on taxi transport? Can clients get their products, and can the company realistically provide services?
The last question defines how important the vehicle is. If it is essential, it essentially needs to be covered under business status. Contact Northeast Insurance Agency Inc for the matching type of coverage.
