Many people assume their personal auto insurance has them covered every time they drive their cars. However, I have met a lot of people who use their vehicles for work or business purposes and don’t have proper auto insurance coverage for their vehicle usage.

Check out our Complete Guide to Florida Auto Insurance.

What is the “Business Use” Endorsement?

The business use endorsement is an endorsement or a rider that can be added to a personal auto policy. The business use endorsement provides coverage for business travel purposes.

We’ll explain what business travel is later. There is a difference between needing a business use endorsement on your personal policy and needing a full-blown commercial auto policy.

What is personal use of a vehicle?

Personal use of your vehicle is exactly what it sounds like. Driving the kids to school, driving to the grocery store, going to the golf course, and even commuting to your workplace.

When would I need a business use endorsement on my personal auto policy?

Driving to and from work is one thing. Some people, however, drive to different locations throughout the course of their workday for their jobs. If your job requires the consistent usage of your vehicle, you may be in need of a business use endorsement to ensure your vehicle is insured properly.

What is the difference between personal and business use of a vehicle?

If you drive to work just to get there, then it’s personal use.

If you drive to places for your work, other than commuting to work, it’s business use.

Examples of Business Travel:

• Salesperson who drives to people’s homes for appointments.
• Real estate agents who drive to different properties for showings and appointments.
• Tutors and instructors who travel to their students’ homes need business use endorsements.
• Home inspector required to drive to people’s houses by the company.

Disclose your business usage to your agent to ensure you have the right coverage.

Insurance Gaps Without Business Use Endorsement:

If you are using your vehicle for business use and you have not added the endorsement to your policy, you are creating a gap in your coverage. If you have an accident while on the job, the insurance company can deny your claim.

How to Add Business Use Endorsement:

• Contact your agent or insurance company.
• Tell them you think you might need to add a business use endorsement. Explain how you use your vehicle for business travel and they can help you decide on whether you need personal use, business use, or a commercial auto policy.
• Adding the business use endorsement will add additional risk to the policy because now you aren’t just driving your car to work and leaving it safely in the parking lot. Now, your car is hitting the road with you every day to help bring home the bacon. You and your car now have much more exposure to all the terrible drivers out there on the roadway.
• If you are reading this, I’m not talking about you as a terrible driver. You and me are fine. It’s everyone else…

Do Rideshare Drivers Need Business Use Endorsement?

• If you are considering Uber, Lyft, or another rideshare platform, make sure you talk to your agent first! Some companies don’t want to cover you if you are a rideshare driver for two reasons.
  • The rideshare company’s insurance has gaps in coverage and some insurance companies do not want exposure to a poor commercial risk like transporting people around for money.

Final Thoughts on Business Use Endorsement

Insurance can be confusing with all the details and trying to remember what is and what is not covered. That’s why having an experienced agent is a must.

Your job is to communicate with your agent or insurance company so they can make sure your policy is setup correctly.

The consequences for inadequate coverage can be financially painful.

If you live in Bradenton, Lakewood Ranch, Sarasota, Ellenton, Parrish, Palmetto, or anywhere in Florida!

Get in touch with me via email, text, or call for a review of your current coverage. I’ll make sure you have your life properly covered.

I am email and text-friendly, but I can also drive to you for an in-person appointment. You know why? I have a business use endorsement on my auto insurance policy.