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5 Key Facts About Small Business Auto Insurance


Are you using your personal vehicle for business purposes? Keep in mind that standard personal auto policies generally have limits and exclusions related to the business use of a vehicle.

The line between personal and business use is sometimes unclear, which can leave you vulnerable to liability. That’s why business auto insurance needs to be a key part of your company’s risk mitigation strategy.

1. Physical Damage

Physical damage, also known as comprehensive and collision coverage, is an important aspect of protecting your business. A collision is defined as a situation where a covered auto is hit by another vehicle or object. If a vehicle is involved in an accident while it’s being used for business purposes, this coverage can help repair or replace the vehicle.

Comprehensive insurance generally covers anything other than a collision, such as fire, wind, hail, vandalism, or theft. Comprehensive coverage may pay to repair the vehicle and replace lost items.

2. Liability

The insuring agreement includes several different clauses that specify who is covered under the insurance policy. This is an important section to review if you have employees. Any person who qualifies as “insured” under the insuring agreement is covered, even if it’s not the person paying the premiums.

3. Medical Payment

Medical payment coverage helps pay for medical expenses if you or your employees are injured in a car accident. The coverage can help pay for doctor visits and medical procedures after anyone in your business vehicle is injured in an auto accident. Coverage applies in all states regardless of where you live or who is at fault in the accident. Medical payment insurance also helps cover medical copays, coinsurance, deductibles, and funeral costs.

4. Policy Conditions

All standard business auto policies include a conditions section, which consists of two parts: losses and general. The losses section explains your obligations under the policy if an accident, claim, or loss occurs. The general section defines coverage territory and describes how your policy will apply when other insurance exists. An insurance agent can thoroughly explain your policy conditions.

5. Policy Definitions

A business auto policy includes many important definitions in the context of liability and coverage. While they typically appear at the end of the policy form and can be easily overlooked, it’s essential to have a solid understanding of the 16 definitions. The section explains the meaning of key terms in the policy and how some words may restrict or limit coverage. It’s especially important to understand the definitions for the terms accident, auto, employee, and suit. Again, your insurance agent can help you understand these terms.

Get a Free Quote from First Entertainment Credit Union Today!

You work hard to make your company successful, so don’t leave yourself open to liability. Meet with one of our business insurance experts to help design a business auto insurance policy appropriate for you and your unique situation. They will recommend the coverage you need at the best rates.

Call or email one of our MBIS Agents today!

  • Cynthia Padilla 323-845-4489 / cpadi@firstent.org
  • Maria Okafor 323-845-4494 / mokaf@firstent.org
  • Monique Garcia 888-800-3328 ext. 5146 / mgarc@firstent.org


Insurance services offered through Media Benefits Insurance Services CA Lic#0H99393, a DBA for Media Benefits Corp., which is a wholly-owned subsidiary of First Entertainment Credit Union.