If you own a business, you likely need a vehicle for work-related trips. Whether you use your vehicle for deliveries, transportation, or just going to visit a client, you need the right insurance coverage. Commercial auto insurance in NH is different from personal insurance, and it’s essential for business owners to understand the differences. Without the proper insurance, you could be liable for damages or injuries caused during an accident, even if you weren’t at fault.
Our team at Morin Insurance is here to explain the key differences between commercial and personal auto insurance in NH.
Coverage
The first and most significant difference is the coverage each type of insurance provides. In general, commercial insurance offers higher liability limits to protect your business from lawsuits. These policies often cover all employees who drive company vehicles and can even extend to employees who use their personal vehicles for business purposes. If any of your employees use their personal vehicles for business purposes, it’s essential to document everything, including dates, locations, and mileage. If something does happen while your employee is out on a business-related errand, you can prove that to your insurance provider if you keep detailed records.
Usage
This difference is the most obvious and simplest to explain. Commercial auto insurance covers all vehicles used for business purposes. That includes heavier vehicles such as box trucks and semi-trucks, as well as specialized equipment. These vehicles are rarely covered by personal auto insurance policies, or at least require additional liability coverage. Vehicles used exclusively for business purposes also fall under commercial coverage.
Exclusions
It’s also crucial to understand what different insurance policies will not cover. A personal policy will not cover business use, so using a personal car for business can result in a claim denial. As we mentioned above, keeping a detailed record of when employees use their personal vehicles for company-sanctioned business purposes is crucial for ensuring your claims are accepted.
On the flip side, you should avoid driving company vehicles for personal use. Just as your claim can be denied for personal vehicles, your insurance provider may also deny a claim if an accident occurred when the company vehicle was clearly being used for a personal errand.
Personal and Commercial Auto Insurance in NH | The Morin Agency
Our team at The Morin Insurance Agency is here to help you navigate the ins and outs of personal and commercial auto insurance in NH. Whether your business has been operating for years or you’re just starting out, we’ll ensure you have the best coverage for your needs.
