Any vehicle, personal or business has several inherent risks. From driver liability to property damage, costs can be high. So, if you own a business and have vehicles that are used specifically for that business, you need to make sure that coverage is extended to them. You must have commercial auto insurance.

Here are five reasons that you need to get business car insurance for your vehicles:

1. Personal car insurance doesn’t extend to commercial vehicles. Business use of personal vehicles is excluded from personal auto insurance policies. If you were to use your vehicle for business and there is a property damage loss or a liability claim, the claims would be denied. You would be liable for any claims stemming from business use. This could run into the thousands.

2. Commercial auto insurance covers all the major risks. There are thousands of businesses with many different risks. The good news is that your commercial auto policy can be customized for your business vehicles. Whether you are delivering products, transporting individuals, or meeting clients, you can get specific coverage for property damage, cargo, liability, and medical payments. Then, you won’t have any coverage gap. It may be more expensive than personal car insurance, but it gives you peace of mind so you can perform your business duties.

3. Commercial liability limits must be higher. Commercial vehicles such as box trucks, tool trucks, and service vehicles can cause massive property damage and liability. So, the liability limits are usually much higher than personal auto policy liability limits. The risk of lawsuits and bad public relations may result. If you don’t have business auto insurance, you may have to pay the damages.

4. Tax deduction: Most commercial car insurance may be listed as a business expense, which is tax-deductible, as allowed by law.

5. Maryland state law states the following: “All motorized vehicles registered in Maryland, whether used for personal or business purposes, are required to carry automobile liability insurance. When a policy is canceled or nonrenewed, an insurer is legally required to notify the Maryland Vehicle Administration (MVA) of the policy’s termination.” *** Make sure you have met all the property damage and liability limits required, too.

Failing to cover your business vehicles could be a deal-breaker. You cannot afford to risk your employees, customers, and cargo to a loss. Meet with your vehicle insurer to learn the options.

Lindquist Insurance has coverage for business vehicles. Call (301) 694-0008 to speak to our experienced and licensed insurance agents for a consultation and quote. We serve the Annapolis, MD, and Frederick, MD areas.

*** For more on Maryland business auto insurance laws, visit the State of Maryland website.