If your small business owns one or more vehicles for commercial purposes, you may be tempted to think a personal auto policy is a way to cut costs. However, business insurance in Orange County is a terrible place to cut corners as it can lead to very expensive scenarios. Companies that conduct business with vehicles should always have commercial auto insurance. Here are two important reasons why.
It May Be Required
Some state, and sometimes federal, laws require commercial vehicles to have commercial liability insurance to run legally. Be sure to look into this before adding a car or truck to your business. In addition, your personal auto insurance policy could be voided if you use that vehicle for commercial purposes. This includes everything from towing cars to meeting clients to delivering food or other goods. In those cases, if you’re not covered by a commercial policy, you’ll have to pay for any claims out of pocket.
It Has Higher Limits
Commercial vehicles such as box trucks are costly and can cause a lot of damage. The liability limits on a personal auto policy won’t be enough to cover if someone sues your company after an accident or to fix excessive damage. Choosing a commercial policy often gives you limits that add up to twice as much as those on a personal policy.
These two reasons are only the beginning of why your small business should purchase commercial auto business insurance in Orange County. Having specific business policies can be the difference between keeping your company running or going under.