Why Commercial Insurance Isn’t Just For Big Businesses

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3 years ago

As the pandemic stretches into its second year, there’s no doubt that many find themselves seeking alternative ways to help increase their income. Stay at home moms might find themselves looking for ways to supplement the family budget, while other individuals might just be looking for a way to replace lost income.

Many seem to gravitate to working in the transport business or as an independent contractor for many gig apps. If you’re thinking of using your personal vehicle for something similar, you’ll likely need a commercial insurance policy.

However, when you see the words “commercial insurance,” you might think it’s something that only big businesses need. However, that couldn’t be further from the truth. Even small companies can benefit greatly from having commercial insurance, especially if the policy is tailored specifically for their needs.

As an independent contractor working for gig apps or even as a small transport business owner, insurance can protect you from unexpected events in life that might catch you off guard.

What’s Included in Commercial Insurance Coverage?


Commercial auto insurance can cover collisions. Collision coverage ensures that you won’t have to pay anything (other than your deductible) for repairs to your vehicle. Some insurance policies may even cover the cost of a vehicle’s replacement.

Loading and Unloading

When you’re working in the transport industry, accidents can occur while you’re loading or unloading your vehicle. Loading and unloading coverage protects you, a bystander, or property from damage that happens in this situation.


Comprehensive coverage takes care of everything that isn’t covered by your personal insurance — including vandalism, theft, and natural disasters.

Medical Payment Coverage

Any medical costs due to injuries that happen during an accident are covered for the driver and any employees. Depending on your coverage, medical payment coverage may also help cover third-party costs.

Uninsured Motorist

Most insurance policies, even personal insurance, include uninsured motorist coverage. This coverage ensures you or your business won’t have to pay out of pocket for any damages or injuries caused by an uninsured motorist.

Why Should You Have Commercial Insurance as a Small Business?

As a small business, it’s quite likely that you have many expenses to contend with. Insurance may seem like just another expense to add to that ever-growing list, but there are many reasons why you need insurance. Fortunately, insurance is designed for businesses of any size, and you can tailor your policy to fit your needs.

Many small businesses will go for fleet insurance, but you don’t need commercial fleet insurance unless you would like to cover multiple vehicles under one policy. You can go for a customized commercial insurance policy for your car instead.

If you’re still looking for reasons to justify the cost of insurance as a small business, here are just a few.

You’re Most Likely Legally Required to Have Insurance

No matter what type of business you’re running, you’ll need to have insurance in one way or another. Most states require varying degrees of coverage, and federal law often requires insurance if you want to get on the road.

You’re required to have insurance whether you’re a private motorist or if you drive vehicles for a living. It’s best to check with your insurance agent or company to ensure you’re compliant with state and federal laws.

Protect Yourself and Your Business

If you’re planning on starting a small business, insurance is a great way to protect yourself if anything unexpected occurs. It’s best to assess your most common risks and see whether you can adjust your policy to cover all your bases. Your insurance policy can also help protect you and your vehicle if anything sidelines you. With the right coverage, insurance will pay for medical costs, vehicle repairs, and even replacements.

Keep Yourself Going in Uncertain Times

Sometimes, the smallest hitch in your daily operations can make a massive dent in your bottom line if you’re a small business owner. This is especially true if you’re an independent contractor relying on your personal vehicle for work. If you want to make sure you have contingencies in case something happens and threatens your daily income, ensuring you have the right insurance coverage can make a massive difference.

Insurance can minimize your risk, making it easier to come back from obstacles that could otherwise put you out of business.

Protect Yourself

Unfortunately, no matter how careful you are, there are no guarantees that you’ll always be safe from accidents and unexpected events. Aside from being mindful, the best way to protect yourself is to have the right insurance coverage. Commercial insurance isn’t just for big businesses — speak to your insurance company about finding the right policy for your needs.

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