If you drive your personal truck for business, you probably already have your own personal auto insurance. Don't rely on this to protect you while you're on the job, though. Your personal insurance usually won't apply to work-related incidents, so you need separate commercial auto insurance.
Most Personal Auto Insurance Policies Exclude Business Use
If you're involved in an accident while working, you could end up having your claim denied by your personal auto insurance carrier. Most policies exclude some type of limitation on business use. You might be OK if you only occasionally drive to run an errand. But, if you're using a personal truck to go from job site to job site and transport equipment, it will probably fall under the business exclusion. This is dependent on the exact policy and circumstances, but you don't want to have coverage in doubt.
What About Personal Policies with a Commercial Rider?
Some personal auto insurance companies offer riders where you can add on coverage for business use at an additional cost. They became especially popular after ridesharing took off and many drivers found that they needed separate business insurance.
A commercial rider may or may not be enough depending on the situation. You'd need to check the policy limits, any exclusions, and whether it depends on how much you use your truck for commercial versus personal activities.
What Happens If You Don't Have Commercial Auto Insurance?
If you don't have commercial insurance, you could lose your truck and possibly more. For example, say you cause an accident while hauling equipment from one job site to another and you only have personal coverage. Your personal auto insurance company will probably deny the claim, and you'll have to repair or replace your truck out of your own pocket. You'll also need to pay for any other property damage or injuries. Even if your business is a corporation, you still might be sued personally as the driver. This could mean wiping out your savings, losing your home, or having a judgment against your future income.
What Happens If You Do Have Commercial Auto Insurance?
If you do have commercial auto insurance, any accident claims will be handled similarly to personal insurance. If there's any dispute over whether the accident was business or personal, you can let the insurance companies determine who pays while being assured that you're covered.
Also Read: Do You Need Commercial Auto Insurance If You Lease Your Vehicle?