Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate drivers about...

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Reviewed by Laura Walker
Licensed Agent for 10 Years

UPDATED: Feb 28, 2020

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All businesses should purchase insurance in order to protect their investments, and small businesses are no different. Defined as a business with fewer than 100 employees, small businesses need to consider auto insurance as well as other lines of small business insurance.

While it may seem like a daunting task, there are many resources to help you find small business insurance.

For one such resource, put your ZIP code in the FREE box to get multiple auto insurance quotes right now!

If a vehicle is used in the line of business, it is important to purchase small business auto insurance for it, as most personal car insurance policies won’t cover damages that occur while driving for business purposes.

What would happen to your business if your revenue and assets were tied up in costly repairs or a lawsuit?

Why You Need Small Business Auto Insurance

Insurance, no matter if it’s for a vehicle or other business property, is about protecting your assets when something goes wrong. The National Association of Insurance Commissioners (NAIC) reported that, in 2008, only 48% of small businesses carried auto insurance.

Those companies without auto insurance are at risk from accidents that could carry high costs for damage to vehicles, injuries to drivers and passengers, and replacement of property.

Auto insurance that covers the vehicles used in your small business first and foremost protects the financial welfare of your business. Costs for damage to property and those involved in an accident are high enough, but lawyers and lawsuits could add to those costs to create an event that could very well end your business.

Your business’s auto insurance also protects you as the owner. Because it is your company, you likely have a great deal of liability, depending upon your type of company.

Auto insurance will prevent you from having to use personal assets towards your business matters in the event of a costly accident or catastrophe.

Furthermore, that car insurance policy also safeguards the health of your employees. More than likely, a car accident in one of your company’s vehicles will also involve yourself or an employee. The insurance will be there to ensure that the injured employee is able to get well and back to work.

Lastly, small business car insurance also protects the operation of your company. Whether from an auto accident or a catastrophe such as flooding or a hurricane, your business is short one vehicle. If that vehicle is imperative to your line of business, how will you operate without it?

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Tips for Finding Small Business Auto Insurance

The U.S. Small Business Administration acts as a resource to educate small business owners on operating a business, complying with state and federal laws, and managing expenses such as small business auto insurance. They offer these five tips for finding insurance for your business’s vehicles:

Assess your risks. If your company doesn’t use any vehicles in the course of business, then your risk is pretty minimal. However, vehicles that are used on long trips, on a daily basis, or by multiple employees need to have the right amount of coverage to protect your company’s bottom line in case of an accident or catastrophe.

Get multiple quotes. Finding multiple packages that meet your needs will help you to get the right coverage at a good price.

See if combining your different lines of insurance will create savings. Fulfilling all of your business insurance needs with just one company, called a Business Owner’s Policy, may result in savings on premiums. Combining your business auto insurance with your property insurance, worker’s compensation insurance, and other packages could result in lower payments overall. You will certainly save time by having only one insurance bill to pay every month if nothing else.

Use a licensed agent. An agent will likely be able to help you to navigate the ins and outs of your insurance.

Make sure to check your agent’s license and reputation at your state’s department of insurance website.

Go over your insurance every year. Make sure that you have enough insurance and make any changes that are needed.

Where to Find Small Business Auto Insurance

Most car insurance companies that sell personal car insurance also sell business auto insurance. In addition, most business insurance companies also offer lines of auto insurance. Then there are companies that specialize solely in business auto insurance.

After assessing your auto insurance needs, make sure that you get multiple quotes and rates to find the package that will work best for your company.

Shopping around to get the rates of many different insurance companies is the best way to get the best price.

Or you can get all of those auto insurance rates right now, just by entering your ZIP in the FREE tool!

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