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Is My Car Covered When I Use it for Business?

July 28, 2011

Well sure, if you have a business or commercial auto policy it is. Otherwise… Probably no. There are no absolutes here but most insurance companies who write personal auto policies exclude Business Use for a personal vehicle. That means if you’re delivering a pizza, picking up office supplies, or doing your firm’s daily mail or bank run, you may not be covered if you get into an accident. 

One mistake people make when assessing whether they need this extra coverage is checking with their employer’s business to see if it has any coverage for business use of their personal auto. In most cases the business does have the coverage, but it only protects the business. So if you’re running an errand for your company and you hit a pedestrian and the pedestrian sues you and your company, the company will have defense and coverage while you will likely not. 

The best course of action for you if you are using your personal auto for some business purposes is to inform your insurance agent and ask them to confirm that you have the coverage you need (get it in writing). If they say you don’t have it, you can ask them (or us) to get you some quotes.

Matt Briggs

Commercial Lines Account Manager