Lots of small business people, especially those who base their business from a home office, rely on their own car insurance to cover a vehicle that gets used to do business. This may have been alirght when the business was very small. But as that enterprise grew, took on more inventory and supplies, hired employees, and started to pick up passengers, this may be a big mistake.

I have seen many of these companies grow. As they grow, they start using the same personal car to pick up inventory, haul equipment, and even pick up passengers. In addition, some business owners even allow employers to borrow the car for work.

So what should you do? You should probably examine your current policy and consult with a qualified insurance agent. You do not want to risk your company because of inadequate coverage. You do not want to risk violating your policy terms and then find out an accident won’t be covered.

Mileage limits could be too low. If you covered your car when you just use to use it to shop for groceries or ferry kids to soccer games you may be exceeding the mileage estimates you declared when you filled out your initial application.

Are you an employer who allows your workers to take your own personal vehicle on work errands. Or do you expect them to drive their own car on company business? This situation should call for consideration of commercial insurance.

And while you should consider vehicle damage, both to yours and other people’s cars, you also need to be concerned about medical liability. If you, your employee, or another person, is injured, damages can really start to add up fast. Does your business pick up passengers? Personal injury suits are common these days, and you do not want to lose your company over one.

What do you carry in your car? If you transport inventory or supplies, you are risking loss through damage or theft if they are not properly covered. Many small businesses really cannot afford to replace these items. Proper business car insurance can minimize risk in case of an acciden or theft.

I is important to understand how adequate commercial vehicle coverage can protect you.

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