Everyone who drives and owns a car is familiar with auto insurance, but what if you own a vehicle for your business? How is it insured? Can you put it under your personal plan? Is there a specific type of commercial auto insurance for vehicles owned and used by a business? These are all good questions, and if you operate your business in the state of Minnesota, here is what you need to know about insuring your company’s vehicle/s.
Can Commercial Vehicles Be Covered on Personal Plans?
In most instances, no. Personal auto insurance is not generally used for vehicles used for business purposes, which is why it’s essential for business owners to obtain separate commercial plans for any vehicles that are used by their employees. Vehicles involved in an accident while engaged in company business may not be covered by your personal insurance. To make matters worse, you could be charged with misrepresentation if you’ve placed a vehicle you use for business purposes under your personal auto policy.
Always make sure to obtain commercial auto insurance for any vehicles owned by the business and strictly used for business purposes.
Note: if you drive a personal vehicle for business purposes (i.e. a food delivery driver, Uber driver, etc., be sure to inform your insurance carrier so that they can adjust your plan accordingly. Your employer may also insure your vehicle when you are driving it on the clock for them, so check with your employer to see if you are covered).
Which Vehicles Need to Be Covered?
According to the state of Minnesota, “all motorized vehicles, whether used for personal or business purposes, need auto insurance.”
This means that any business-use autos, pickups, vans, trucks, and non-owned/rented vehicles need commercial auto insurance coverage. You may also want to include coverage about non-owned vehicles if you have employees use their own vehicles. This can be for running business errands or if an employee travels and needs to rent a car.
What Commercial Auto Insurance Covers
Commercial auto insurance in Minnesota, depending on the plan, will normally cover medical expenses for injured persons and damages to the property of other individuals as a result of a motor vehicle accident caused by the insured’s negligence. These types of plans typically have higher liability limits than auto insurance plans for personal vehicles.
If you are interested in getting an insurance plan for your business’s vehicles, consider who owns the vehicle, who will be driving it, and how it will be used (e.g. transporting people, delivering packages, or carrying hazardous materials).
The Minnesota government website has more tips and information on commercial auto insurance here.
If you are looking for auto insurance for any company-owned vehicles used by your business, get in touch with the business insurance experts at The Patrick J. Thomas Agency today.
Disclaimer: this is for informational purposes only and is not intended to be legal advice. If you need legal counsel, please contact an attorney directly.