Running a business in the modern age can be a perilous affair and there are many pitfalls that should be avoided in order to keep operations running smoothly, efficiently and within the confines of the law. California commercial auto insurance is one such area where clarity and consideration must be afforded.
If a business owner in California is planning to drive a vehicle that is already insured for social and domestic purposes, California commercial auto insurance legislation requires that an additional policy is purchased strictly for business use. Any accident caused while using a vehicle for business purposes would see home auto insurance invalidated.
California commercial auto insurance can cover a number of things but effectively, it adheres to the same 15/30/5 Tort system rating that applies to all other forms of transport in the Golden State. As well as providing cover for injury to third parties and damage to their property, a sound California commercial auto insurance policy should also provide cover for collision damage, underinsured motorist coverage and personal injury. Additional insurance will also be needed if members of staff use their own vehicles for carrying out work on behalf of a business owner.
California commercial auto insurance should not be undertaken lightly and instead of opting for the most cost-effective policy, business owners should take time to check insurer ratings and side with a company that has a record of good performance and financial stability.
It is always worth discussing California commercial auto insurance with your existing agent to see if a deal can be brokered on a previous commitment to a home-based policy. Companies that specialize in commercial auto insurance should also be considered.