Auto Insurance for a Home-Based Business
In most cases, home-based business owners who use their vehicles to deliver goods or services or to transport their equipment from job to job need only the personal auto policy they already have. As long as you are not driving other people around a lot, your personal auto policy is probably just fine. However, depending on your particular use of your car, you may need to purchase higher coverage limits to protect yourself and your business.
In other cases, particularly if you are transporting people for any reason in the conduct of your business, you should consider a home-based business auto policy. A home-based business auto policy is priced no differently than your regular auto policy. Insurance companies look at the number of miles you drive, who will be driving the vehicle, your driving record, and your claims history in order to set your premium.
The liability limits you choose and your comprehensive and collision deductibles are also major factors in how much you are going to pay. The higher your limits, the higher your premium. Lower deductibles are going to cost you more, too.
As a home-based business owner you need to pay attention to liability limits in order to protect both personal and business assets. If you cause an accident, the injured parties can go after you as an individual and as a business owner. In order to minimize financial risk, you might consider higher liability limits.
Many home-based businesses move equipment from job to job, like power washers and ladders for house painters, lawn mowers and other gardening equipment for landscapers. If you have a homeowner's or renter's insurance policy the equipment you haul from job site to job site is minimally covered. Your insurer will typically cover damages from $250 to $1,000, minus your deductible.
If you permanently affix a piece of equipment, like a generator, to your vehicle, the generator will not be covered unless you increase your insurance on your vehicle in order to cover items that are permanently attached.