Business Auto is just like your personal auto policy but designed for any vehicles associated with your business. This could be leased, rented, or owned. More importantly, it could be your employee’s vehicles if they use their personal vehicles while fulfilling their employment obligations.

Business Auto protects your business financially from any accidents associated with operating a vehicle while conducting business operations.

Suppose you are regularly using vehicles for business. This includes delivering goods, transporting items to an event, traveling to meet retailers, and your employees using their personal vehicles for work responsibilities. All could be reasons to purchase a business auto policy.

Your 3PL company may have business auto coverage for their vehicles, but their policy may be limited to what is covered. Reviewing these contracts to ensure you are protected should something happen while your product is in transport is important.

If you don’t have appropriate business auto coverage, you could risk out-of-pocket expenses like vehicle damage, damaged goods, and medical bills. Depending on your reserves, this could be detrimental to the operations of your business.

You should review your coverage at least once a year, any time you purchase a vehicle for the business, or hire a new employee who uses their car to complete their work responsibilities.