When Do You Need Commercial Automobile Insurance?

The most logical answer would be when you own a business. However you should be aware that if you use your car to make any type of delivery, (including pizza delivery) or if you are social worker and your employer requires you to transport patients you may also need commercial automobile insurance.

What If I Am a Contractor? Do I Need Commercial Automobile Insurance in Cincinnati?

It really depends on a number of different factors. The first factor might be whether or not you allow employees to drive your owned vehicles in the business? If so you should be aware that there is a specific exclusion in the personal automobile insurance policy with insurance companies that excludes any type of business activity while using a personal vehicle.

The second factor is in reference to the terms and conditions of your personal automobile insurance policy. If the company taking care of your automobile insurance in Cincinnati does not allow any type of business activity, and an accident occurs while you are engaged in any type of “business or trade” you could receive a claim denial and need to pay the claim entirely out-of-pocket.

Some insurance companies may allow a business use endorsement. This endorsement will add a surcharge on the automobile policy, but gives you the right to use your vehicle in your business or trade as long as it doesn’t involve allowing employees or contractors of your business to operate your vehicle. (You need to read your insurance policy or contact your insurance agent to learn whether this is acceptable.)

A third factor has to do with how the vehicle is titled, registered, or whether or not there are any advertisements displayed on the vehicle. If your vehicle is registered or titled in your business, or you have advertisements displayed on your vehicle or trailer, the personal automobile insurance policy would be unacceptable even with the business use endorsement and could possibly generate a claim denial by your insurance company if that vehicle were involved in an accident while engaged in business or trade. In this instance is would be appropriate for you to purchase commercial car insurance in Cincinnati.

Not sure whether or not you need commercial car insurance in Cincinnati? Give us a call at 513-662-7000 so we can help you to understand whether or not you need this type of automobile insurance.