Do you own a company vehicle?
One that is titled, registered, and insured to a business entity.
If so, you may be making one of the biggest mistakes business owners make with their insurance.
Biggest mistake business owners make on their insurance!
Owning a company vehicle is great, and that is not the mistake that I am talking about.
Towing a trailer with that company vehicle is a mistake unless you are adding that trailer to the business auto insurance policy.
Now, we see this mostly in the construction industry, landscapers, and handymen. Where they have one or two trucks that are owned by the company and a handful of different trailers that they use for different jobs.
One big difference between personal auto insurance and business auto insurance is the liability of that trailer is not automatically covered when the business vehicle is towing it and the trailer weighs more than 2000 lbs.
Business Auto Insurance
When you have a business auto policy and commercial vehicle and you’re towing a trailer, whether the trailer is being used for your business activities or it’s your personal boat trailer that you’re using with your business vehicle, you need to make sure that you add that coverage, that specific trailer, to your commercial auto policy for at least liability coverage.
This will cover you in the event the trailer does damage while towing it, whether it is hitting a parked car because of a wide turn or even hitting a pedestrian. Liability Coverage protects you against bodily injury or property damage you cause.
Physical Damage Coverage
Not all trailers are the same but some of them can be very expensive. Outside of adding your trailer to your business auto policy for liability coverage, you should also look to add for physical damage, if the trailer is worth something to you.
Physical damage coverage will protect you in the event there is a collision and your trailer is damaged or also if someone steals it.
Tools & Equipment Coverage
Another mistake business owners mostly contractors make is by not covering their tools and equipment. They think their home insurance will protect them when in fact it won’t once they know you own a construction business.
Tools are generally left inside your trailers and thieves just take the entire trailer. If you add the trailer to your business owners policy that is great but just be aware that the tools and equipment that is inside, is not included.
If you are a business owner and have commercial vehicles on the road then you’re property using trailers, and if nobody’s ever told you that before make sure that you are including them on your insurance policy.
Give your insurance agent a call to discuss the best way to fill the gaps in coverage that this might cause.
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