Commercial vehicle insurance is a policy that takes care of a commercial vehicle’s liability, physical damage and any other optional coverage so that a business can be safeguarded from any type of loss while a vehicle is being operated while conducting a business. While a personal auto policy may look similar to commercial auto policy, there are many differences between the two of them. So, it is crucial for the entrepreneurs to appreciate the difference between the two.
It is a different story altogether as far as the issue of hired or a rented vehicle is concerned. However, when your business owns one or many vehicles that are being used for business purpose, you require auto insurance singapore . A commercial auto policy is also needed when the employees are using their own cars for conducting business. So, there is a very thin line between the two.
There are various myths that surround commercial auto insurance. Some of them are as follows.
Myth 1: If a businessman runs a seasonal business, commercial auto policy is not needed while the business is not operating
The truth of the matter is even though there is a temporary downtime; you should not cancel your commercial vehicle policy. There are two major reasons for it. Firstly, when you do not cancel your commercial policy, you will have to pay a lower premium as compared to the situation when you cancel your policy and then again begin later on. Secondly, once you cancel the policy, your stored vehicles will not enjoy any insurance coverage. Thus it is good to go for a comprehensive-only coverage while there is downtime so that your business vehicles will still be protected against fire, vandalism or theft.
MYTH 2: In case an entrepreneur makes deliveries, his or her personal vehicle will safeguard the personal vehicle
Your personal vehicle insurance policy can only protect you when you are driving to commute to and fro from office or for leisure. But it will not provide protection for your vehicle in case you are self-employed and use your personal car for the sake of business. In case your vehicle meets an accident while delivering some products of your business, your claim can be denied by your personal insurer. So, you require a commercial insurance coverage for these types of claims.
It is crucial to understand the various aspects of your commercial vehicle policy, so contact your agent to ensure.