Does Your Delivery Business Need Commercial Auto Insurance?
The rise of delivery services has created incredible opportunities for businesses, but it also introduces unique risks. If your company uses vehicles to transport goods, whether it’s food, packages, or materials, you must have the right protection. A personal auto policy simply won’t cover accidents that happen during business operations, which makes dedicated commercial auto insurance an absolute necessity. At Insurance Company Whitehall Ohio, we help delivery businesses understand their specific coverage needs to ensure they are fully protected on every trip.
Why Personal Auto Insurance Falls Short
Many small business owners mistakenly believe their personal car insurance will protect them if they use their own vehicle for deliveries. This is a critical and costly error. Personal auto policies contain a “business use exclusion,” which means the insurer can deny any claim that occurs while the vehicle is being used for commercial purposes, including making deliveries.
The "Business Use" Exclusion
Insurance companies define “business use” broadly. If you are using your vehicle to earn income, it qualifies. This includes everything from a full-time courier service to a restaurant owner making occasional food deliveries. If an accident happens during one of these trips, your personal insurer will likely refuse to cover property damage, medical bills, or liability costs, leaving you and your business to pay for everything out-of-pocket.
Gaps in Gig Work Coverage
If your drivers work through a third-party delivery app, you might assume the app’s insurance is enough. While these companies often provide some level of coverage, it is typically limited and may only apply during specific phases of the delivery process. This can leave dangerous gaps in protection, especially if a driver is on their way to a pickup or between deliveries. A dedicated commercial policy ensures continuous coverage for your vehicles and drivers, regardless of app status.
Don’t let a gap in coverage put your delivery business at risk. A single accident can lead to financial consequences that could shut your company down for good. The team at Insurance Company Whitehall Ohio can review your operations and craft a policy that provides complete protection for your drivers, vehicles, and business assets.
