If your home business involves moving anything from A to B by road, then you really should purchase business vehicle insurance.
Why you Need Business Vehicle Insurance
I detest insurance companies, especially car insurance. One of my clients is an insurance broker and even he tells me that car insurance and vehicle business insurance are a rip off. BUT you have to have car insurance in any state, and getting the minimum insurance that your state requires is just plain stupid, especially if you have an expensive car. Some state minimum liability requirements are not enough to cover a couple of MRIs and a trip to the emergency room, so make sure your vehicle insurance coverage is adequate.
If you are starting out your home business on a small budget, it’s very easy to overlook the business vehicle insurance aspect – and that would be any vehicle that you use for business purposes. If you sell on eBay or Etsy and your back window is obscured by piles of packages on the way somewhere, it is possible that questions could be asked. Don’t give the insurance company an excuse to deny your claim – oh and they will in a heartbeat.
Business Vehicle Insurance Doesn’t have to Cost a Lot Extra
Better safe than sorry, and it’s true in the case of business vehicle insurance. In the past couple of years I have had two friends get into serious financial problems because they were using their vehicles for business purposes without commercial business vehicle insurance. One is an antiques dealer who was hit by someone else – he had a dresser and some other furniture sticking out the back of his SUV. The other was a handyman – his van was piled high with tools and equipment.
Car Insurance Does Not Cover Contents
If you carry expensive equipment around in your vehicle and it gets stolen, the only recourse you have is by making a claim on your house or renter’s insurance. The loss of expensive equipment for a photographer or someone who leaves a costly laptop in his car can mean starting a business all over again.
Depending on how you have your business set up this could be a tax deduction as it is a legitimate business expense.
Whatever kind of home business you have, talk to your insurance agent about business vehicle insurance.