Many small businesses owners use at least two vehicles, sometimes more.

And so often, we find small business owners blurring the line between personal and business owned vehicles. Whether it’s a personal car that is used for business purposes or a vehicle that is purchased by the business and occasionally used privately, it’s important to know that standard personal car insurance policies usually have limits or exclusions relating to business or private use (depending on how the car has been purchased) that may impact the payout when it comes to claim-time.

For example, consider a self-employed plumber who has two or three vehicles that are used for delivering equipment to clients. It’s likely that the plumber has some business auto coverage, but is it the right coverage for what the vehicle is being used for?

A small, local computer technician who drives a bakkie to visit clients. In her bakkie is her own computer equipment and her clients’ belongings, as she often delivers and collects goods from them. If she is in an accident and her clients’ property is damaged, what happens? What happens if the bakkie is parked in a parking lot and all the contents are stolen?

Here is an overview of four key questions to ask your broker to ensure you have the right coverage for your needs.

1. Ask about the symbols

The standard business auto coverage form uses 10 symbols to describe insured cars, and unless there’s a symbol shown beside the coverage name, the cover won’t apply. Not only should a coverage symbol be shown, but it must be the correct coverage symbol, or you might be without the cover you intended to have.

There are plenty of symbols ranging from 1 to 19 to become familiar with, but that’s not your job. That’s up to your broker, just remember to ask about them!

As an example, if your auto business policy has symbol 1, you will have coverage for any vehicle owned, hired, borrowed or used, because symbol 1 encompasses all other symbols. However, symbol 8 is only for hired cars.

2. Ask about liability insurance

Asking your broker about car liability insurance will help you understand the liability insuring agreement, limits, coverage extensions and exclusions. You’ll be informed about clauses defining who the insured is, and if your small business needs liability insurance. Any insured individual can qualify to receive benefits of the policy even if you’re not the person who pays the premiums.

3. Ask about business auto policy definitions

There are 16 important business auto coverage definitions for small business owners to understand. Here are a few that we find to be most significant:

• This includes repeated exposure to the same conditions that result in property damage or bodily injuries.
• An auto is described as a land motor vehicle, trailer or semitrailer that’s designed for travel on public roads. This description includes mopeds, motorcycles, trucks, three-wheelers and scooters.
• Policies usually state that employees are leased workers, not a worker hired on a temporary contract. When it comes to coverage exclusions and conditions under some policies, leased employees are considered the same as regular employees; temporary workers aren’t.

Give us a call or contact us if you need a quote or have a few questions about car or business auto insurance.