Do you use your personal car for business? Remember insurance
If you regularly use your car for business purposes, you'll want to consider getting business insurance that includes vehicles as protected assets. If you don't, you could leave yourself vulnerable further down the road.
Uninsured vehicles can rack up the costs
When you're starting your business, insurance for the company car is not the first thing on your mind. However, the Victorian Government's Business Department warns business owners of the dangers of not insuring their vehicles. If the car is damaged, stolen or destroyed, you'll not only have the cost of repairs to confront but also the costs of major business disruption.
A single wreck or bad incident could even mean the end of your business, since a car is no small investment. Your business or you personally could be held liable if you don't take the necessary precautions and carefully choose the right business insurance, according to BizFilings, a business that advises entrepreneurs.
This is why the Victorian Government advises that you should ensure your coverage includes commercial/business use. Don't be fooled into thinking that you're insured because it is compulsory to insure vehicles for third party injury liability in Australia if your use motor vehicles for your business.
Why is there a distinction between business use and personal use?
Not many drivers using their cars for business purposes are prepared for the costs that they could personally be held liable for shold something bad happen.
"From an insurance point of view, this is a different animal."
Almost all insurers separate business-related driving from commuting or leisure-related driving, according to Steven Weisbart, a senior vice president and chief economist at The Insurance Information Institute. What's the reason for this distinction? If you're driving for commercial purposes, you're much more likely to be in the car all day long.
"Whereas you might stay home if it's lousy weather, you're now out trying to make a buck," Weisbart explains. "From an insurance point of view, this is a different animal."
MGA's business cover
In a nutshell, you want to treat your car just like any other company asset. You would never allow employees to operate treacherous machinery without some sort of insurance policy in place. The same goes for cars – you want to have solid policies in place that protect you in case of disaster.
To learn more about our business insurance and how to get protection for your vehicle, contact MGA Insurance Brokers.