You get in a wreck and find your car insurance won’t cover you. What happened? If you were conducting business and you were not carrying a commercial policy, you could be in danger.
So, if you are a business owner, following up with the type of auto insurance you have is critical as you and your business could end up being liable. To start, you need the same kinds of insurance coverage for the car you use in your business as you do for a car used for personal travel -- liability, collision and comprehensive, medical payments (known as personal injury protection in some states) and coverage for uninsured motorists. In fact, many business people use the same vehicle for both business and pleasure. If the vehicle is owned by the business, make sure the name of the business appears on the policy as the "principal insured" rather than your name. This will avoid possible confusion in the event that you need to file a claim or a claim is filed against you.