Commercial Auto Insurance Vs. Personal Auto Insurance Coverage

Everyone who owns and drives a car needs auto insurance, including business owners. There are a good deal of different insurance policy coverage options, including different ones designed for personal auto insurance coverage and commercial auto insurance coverage. Businesses in Youngsville, NC could compare the different types of policies and learn where each one comes into play in the event of an accident. 

Then, if you still have questions, call our agents at Holmes Insurance Services today. 

What Does Personal Auto Insurance Entail?

Personal insurance covers everything you own, including home to car. Personal auto insurance protects your personal vehicle that is not used for commercial or business purposes. This type of insurance is for vehicles personally owned and the title is in your name. Your personal auto insurance policy covers you when you commute to work or drive on your own time. When you begin to use your vehicle for work purposes, personal insurance no longer covers it. 

What Does Commercial Auto Insurance Entail? 

Commercial auto insurance covers more than personal insurance does. The added coverage is because the risks are higher when a vehicle is used for business purposes. Commercial auto insurance covers similar personal auto insurance items, including legal, medical, and damage costs. The added coverage protects you against the higher liability involved in owning and operating commercial vehicles. 

When Would I Need Commercial Auto Insurance? 

Here are some situations where you would need to have a commercial auto insurance policy: 

  • Transportation Service: You work transporting passengers or goods with your vehicle. 
  • Truck Driving: Drivers of semi-trucks may need this add-on policy, especially if they are an owner-operator. 
  • Providing a Service: You are a contractor, landscaper, or other similar service providers.
  • Drive for Business Reasons: Real estate agents or those who often drive to see clients. 

Those who use their car in Youngsville, NC may want to reach out to Holmes Insurance Services to discuss commercial insurance options available for business-related driving. 

Why Commercial Insurance is an Asset

Is commercial insurance an expense or asset? Most business owners in Youngsville, NC and other parts of America think of insurance as an expense. In fact, accounting practice dictates we treat commercial insurance as such. While insurance is an expense in the strict sense, you should view it as an investment (asset) that cushions your business when the unthinkable strikes. As a matter of fact, insurance is a promise to pay in the near or long-term future. And like the purchase of any other investment, the purchase price is a consideration, but the value shouldn’t be put on the wayside.

If you have been viewing commercial insurance as just another expense, think again. Here is why commercial insurance is an asset for your business.

Liability protection

When you buy commercial insurance from Holmes Insurance Services, it safeguards your business against liabilities like bodily injury, property damage, and advertising injury that your business could cause to other people. 

Since liability claims can be expensive, commercial insurance ensures that you don’t have to dip in your pocket when third-party claims come calling. 

Protects your employees

Your employees’ productivity could be affected by work-related injuries and general illnesses. And since you are responsible for your employees’ welfare, paying for your employees’ medical costs can cripple your business finances. Thankfully, when you have workers’ comp insurance, your employees’ medical expenses, partial loss of income, and funeral costs are taken care of by commercial insurance.

Protects your assets

Think of the value of your business assets. Ranging from your building, inventories, furniture to computer equipment, it would be catastrophic to lose your assets when a disaster strikes. Thankfully, when you have invested in commercial insurance, your insurer compensates you for losses and damages to your assets.

The list above isn’t exhaustive. There is a lot more you can benefit from commercial insurance. If you are looking for proper commercial insurance in Youngsville, NC, contact Holmes Insurance Services.