Auto Insurance for Small Businesses: How it Differs from Personal Auto Insurance Coverage
My husband is starting a business where he will be driving passengers in a 15-passenger van. Does he need different auto insurance than his normal auto insurance? If so, what kind? - Sue K.
You absolutely need a separate insurance policy from the one you have on your personal vehicle(s)! Usually if you are transporting passengers for a fee, you need a business and/or commercial policy, which will provide you with insurance to cover your van, and liability insurance to cover your passengers in the event of an accident. Ask about a business insurance policy, as well, to cover your new enterprise. Be sure to check with your insurance agent and have the right policies in place before you begin carting passengers in your van. Be careful: your personal auto insurance policy likely has a specific exclusion for paying customers.
Lori Mandell is an attorney, writer and editor. Her specialty areas include insurance, personal injury and estate matters.
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