Does your company need commercial auto insurance? It can be difficult to tell. There is no straightforward "yes" or "no" answer for many companies -- especially companies that are smaller in nature. There are a few questions, however, that you can answer that will tell you whether or not your company could benefit from commercial auto insurance.

Do Your Employees Travel for Business?

If your employees regularly travel on-site to clients or complete other business-oriented activities within their vehicle, it's usually a good idea to have commercial auto insurance. Still, this is a bit of a grey area. If, for instance, a single employee operates as an assistant and performs work-related tasks in a personal vehicle, it may not be necessary to have commercial auto insurance. But if many employees are regularly traveling from city to city to complete work-related tasks, commercial auto insurance may be necessary.

Do You Own or Lease Any Company Vehicles?

If you own or lease company vehicles -- any vehicles that are used for business, even if they do not have logos or other markings -- then you probably need commercial auto insurance. While personal auto insurance may cover some liabilities, it is not going to cover any damages incurred in the ordinary operations of your business.

Does Your Company Transport Products or Equipment?

When transporting products or work equipment is a part of your business, the vehicles used for this transportation are often considered to be under your company's responsibility not the driver's. This is true even if the person completing the transportation has personal insurance and is completing the transportation in their vehicle.

Do You Transport or Pickup People?

Medical liability issues following an accident can get extremely expensive very quickly. If your company picks people up and drops them off -- for any reason -- you should have commercial auto insurance. A one-time pick up of a client is probably not enough to raise a flag, but if your company requires that you pick up and drop off people on a regular basis, it's different.

Does Your Company Require Any Vehicle Modifications?

If your company requires any modifications to vehicles, it will usually need commercial auto insurance. For example, employees may use their personal cars but may need to install a company logo on it. At this point, the vehicle is being used primarily as a business vehicle and thus should be covered under a business policy. 

Premium costs aside, it's always a better idea to have more insurance rather than less. A small commercial auto insurance policy paired with a comprehensive business umbrella insurance policy may be all a company needs to ensure that it is protected. To learn more, contact a company like Kirby Soar Insurance with any questions or concerns you have.