What Is a business auto policy?
A business auto policy is a type of coverage that goes beyond typical commercial vehicle coverage. Business auto insurance, also known as a business auto policy (BAP) is a type of commercial car insurance that offers more extensive coverage that can be applied to commercial vehicles as well as employee-owned vehicles that are being used for business purposes. Generally, BAP coverage will include auto liability insurance and physical damage, with an option for additional coverage. It is important to note that in many circumstances an employee’s personal coverage may not offer enough coverage if they are involved in a covered accident in which they are at fault. Please be aware that Infinity Insurance Agency, Inc. (IIA) does not offer this particular coverage.
Understanding when you need a business auto policy
Your business may benefit from this coverage if you:
- Make client visits or presentations using your personal vehicle.
- Travel between different work locations (excluding regular commuting from your home to an office).
- Use your personal vehicle for business deliveries.
- Conduct any work-related driving not covered by your employer’s insurance.
Benefits of a business auto policy
Business auto insurance may provide:
- Enhanced liability protection for business-related covered accidents involving personal vehicles.
- Higher coverage limits compared to a standard commercial policy.
- Options for add-ons such as comprehensive and collision coverage.
Common exclusions with business auto coverage
Be aware that business auto insurance generally will not cover:
- Coverage of sub-contractors that are not listed on your auto insurance policy.
- Commercial activities like ridesharing or delivery services.
- Activities explicitly excluded in your policy terms.
Cost considerations for a business auto policy
Several factors may influence the cost of your business auto insurance including but not limited to:
- The volume of your business-related driving.
- The specific type of business activities conducted.
- The insured vehicle’s year, make and model.
- Your employee’s driving history and claims record.
- The selected coverage limits.
Steps to obtain a business auto policy
Follow these steps to add business auto insurance to your existing coverage:
- Evaluate your business driving needs.
- Review your current commercial coverage.
- Do your research and reach out to agencies that offer BAP to discuss possible coverage options.
- Compare different coverage levels and costs.
- Select the appropriate coverage limits for your business needs.
- Add the endorsement to your policy.
Have questions about BAP vs commercial coverage?
While BAP is a type of commercial auto coverage, it is important to note that BAP offers the flexibility to provide coverage for business, personal, non-owned or hired autos. In addition, BAP generally utilizes a combined split limit for the limit of insurance and may offer higher coverage limits. Depending on your unique business needs you may opt for either commercial or BAP coverage.
Commercial Coverage
The knowledgeable insurance professionals at IIA are ready to help you choose the right commercial vehicle coverage for your needs. Contact us today to:
- Get a personalized commercial quote.
- Review your current coverage.
- Discuss your business insurance needs.
- Learn about potential available discounts offered through our carriers.
Having the right commercial coverage for your work vehicles can be an important step in a successful business operation. An adequate network of coverage may allow for greater freedom when conducting your business activities.
To learn more about our commercial coverage options or receive a free quote, call 1-855-478-3705 to speak with an IIA agent today!