Written by- Kimberly A. Gibas CIC, CAWC
If you happen to be one of the many Michiganders who deliver food for a living, you may not realize the complexities involved in insuring your vehicle used to make deliveries. Standard auto insurance policies contain forms that exclude business usage of vehicles, making these policies inappropriate for food/grocery delivery. Instead, you need a commercial auto policy to properly address your risk.
What does this mean for you? If you’re involved in auto accident, there may not be coverage at all. Sadly, many do not learn about the difference until its too late. The realization comes after an accident where someone was injured, or your vehicle was damaged, and the insurance company refuses to cover or defend you. This is because at the time of the accident, you were using your personal vehicle for work or “business” purposes, NOT personal usage.
This exclusion is very common with standard auto policies and allows the insurance company to refuse to cover the claim because the use of the vehicle changed from personal use to commercial.
Remember if you are using your vehicle as a business, you need a commercial auto policy. If you aren’t sure if you have the right policy, call your Agent and ask before it’s too late.