A small business belongs to different criteria other than personal matters. Therefore, it can bring with itself a lot of problems including how to select vehicle insurance. In order to find a solution, you need to consider the type of the vehicle and the method of usage. A personal auto policy does provide some coverage when it comes to business usage. But it wouldn’t be sufficient enough if the particular vehicle is being used mainly for business purposes.
You will need commercial vehicle insurance no matter the scale of your business. As said above, a personal auto policy does cover some aspects of business uses but it doesn’t provide coverage when it comes to business usage that involves the transportation of merchandise and passengers for hire. For example, a distributor of food like a caterer will not be provided coverage under a personal auto policy in the event of an accident that took place while delivering food. This involves Uber drivers as well.
Vehicles owned by businesses and some particular types of vehicles that are intended for commercial use are not covered under personal auto insurance. Some examples of these types of vehicles are tow trucks, vehicles used for catering purposes to which cooking equipment has been installed and pickup trucks that are attached with toolboxes and ladder racks. Consider commercial motor insurance in Singapore if you’re employing staff to drive the vehicle. It will also provide you with more liability insurance protection. It is up to you to protect the interests of your business to whatever extent you can. This will affect you positively in the long run.
Given most of the connotations that come with commercial insurance, it tends to be more expensive than personal auto insurance. Some of the reasons are the higher liability limits offered and the coverage of increased risk. However, as a small business owner, such insurance will become invaluable to your commercial activities. You will be afforded a higher degree of protection in the event of an accident. To further gain an understanding of dealings related to insurance, you can consult a trusted insurance agent. You will be better equipped to choose an insurance policy thereafter.
There are a few circumstances where you will be denied the benefits of insurance. One such instance is if you violate the terms set by the insurance policy. In this occasion, it will be your responsibility to repair the vehicle. You will be held accountable for any damage or injury you cause for other people. Therefore, it is your duty to drive safely with respectful regard for the items you carry and the passers-by in the road. Stress the importance of road safety when you hire employees for such activities. You can also conduct a thorough background check to ensure they have no prior charges.