Business Vehicle Insurance
Reader’s Question:
I am planning to put up a small home-based pie bakery with delivery service. We shall start with just one vehicle, but if everything turns out good, we might expand. However, right now, would you advise me to avail of business vehicle insurance even though I still have one vehicle?
Jersey
Dallas, TX
Venturing into a new business is highly comparable to going to uncharted territory. There are a lot of risks that you would have to take. Your decisions may go as planned, but they may also go awry. This is why you need to strategically plan your financial input and output in order to make your business grow. And in your case, you should be able to wisely choose which kind of vehicle insurance you would be getting, since you are planning to add delivery service to your home-based pie bakery business.
To answer your question, it all really depends on how much you think your vehicle is going to be on the road. Now that you still have one vehicle to be used for delivery, it is very crucial to correctly approximate the frequency of your vehicle being on the road. The reason behind this is that at this early a stage, you could actually avail of either personal vehicle insurance or business vehicle insurance. If you see your bakery having lots of delivery orders, it would mean your delivery vehicle being always on the road, hence higher exposure to traffic accidents. Business vehicle insurance would be better in this case. If you do see yourself initially not receiving lots of delivery orders, then personal vehicle insurance would suffice, which you could then just change to business vehicle insurance by the time that your business grows.
In any case, consulting an independent vehicle insurance broker could greatly help you decide. They would be able to ask all of your questions.