Small business owners have a lot on their plate, especially when it comes to insurance. Business auto insurance is just one type of coverage you need, and while it may seem like a simple decision, there are many pieces to the puzzle of which you may not be aware. Check out these five facts that all small business owners need to know.

Your Personal Car Insurance May Not Be Enough

Many small business owners save money by using their personal car for business use. Imagine you are driving your personal car to deliver a product to a client or driving to a client's office for a meeting and you get into an accident. Most personal auto insurance will not cover these costs because they are related to running your business. This is the reason all small business owners must consider a business auto insurance policy, whether you have official business vehicles or not.

Employees' Car Insurance May Not Be Enough

Your employees may face this same dilemma if they drive their personal cars for business-related reasons. Its late afternoon, but an important letter must be mailed. Your secretary decides to drive her own car to the post office but gets into an accident on the way. Her personal car insurance may not provide enough or any coverage, making you and your business financially responsible. To protect your business, you'll need a non-owned auto liability policy to protect against employees with none or inadequate insurance. 

Business Cars Can Be Used for Personal Business

On the flip side, many business owners reward employees with a company car, which is a business-owned car that can be used for business or personal use. In most cases, this is not covered by the employee's auto insurance. It is covered under the business auto insurance, but you must specifically ask for this type of coverage from your agent. Otherwise, you are not covered and will be at risk in the event of an accident.

You Are Liable for Dangerous Drivers

If you think as long as your employees are covered, you're covered, think again. Even if an employee is covered to drive one of your business vehicles, but they are a dangerous driver, you could be held liable. As the business owner, it's up to you to determine if employees are safe on the road or risk being found liable of negligent entrustment. The costs of negligent entrustment are in addition to any liability costs, so make sure your employees do not pose a threat before letting them drive any car you own.

Business Auto Insurance Is Tax Deductible

Many small business owners, especially those who work from home, do not realize that some auto insurance is tax deductible. You'll have to determine what percentage of the time you use your car for personal reasons and what percentage of the time you use your car for business reasons. In many cases, you'll be allowed to deduct the cost of insurance premiums as well as other actual expenses of driving your car for business-related use. Make sure to keep records of everything to prove how often you use your car for business.

Reexamining Should Be Done Each Year

Your small business grows every year, which is why it is important to reexamine your commercial auto insurance policy each year. For example, your current policy may not include non-owned auto liability, but recently, many of your employees started driving their personal cars for business reasons. In some instances, you may not even realize minor changes to the way you run your business affect your auto insurance, so talk with your agent each year to keep you on top of things. Don't suddenly realize you aren't covered when it's too late.

Don't assume your personal auto insurance is enough. Your small business needs commercial auto insurance. Contact an agent such as  one at David/Greg Insurance Consultants Inc today to discuss the right policy for you.