Commercial

How do you know if your insurance should be "personal" or "commercial". A good rule of thumb is to ask yourself, what is the use of the object? If your company owns your vehicle but you only use it for going to and from work then that vehicle is considered personal. If you use that same vehicle to carry supplies to the job site then it is considered commercial.

Of course there are exceptions to the rule. This is where giving full information helps to get you the actual rating your vehicle should have. If you are a salesman who only carries samples then likely your vehicle will still be rated as personal. If you are a janitor and only carry a small cardboard box of supplies then the underwriter may agree to a personal ruling.

Is there a difference in price and coverage between commercial and personal? Yes, in auto insurance there are many companies that give accident forgiveness for personal use. There are only a few that do the same if your commercial-classed vehicle has a claim. There can be more discounts for the personal vehicle. For the commercial vehicle once you go over a 60 km radius you will see rates quickly going up.

There is also commercial and personal property. Again, your company can own your home but if you live in it as your principal dwelling it would have personal homeowner's insurance. If it is owned as a rental property then it is more likely to be written as commercial. Commercial has higher deductibles, higher minimum premiums and different coverage then personal.

There is a difference between your personal actions and your actions as a business person. Your world-wide liability you have under your homeowners policy does not cover slander or libel. Your business insurance will cover both of these types of injury claims.

Ask questions. Talk to your broker or agent. Think about what could happen and what you can do to prevent claims. If you cannot adequately cover your risk of financial loss from a claim then you need to purchase insurance.

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