Not everyone who owns a business has commercial auto coverage. But, if you are a home business owner and use your vehicle to deliver goods and services to your customers, then you would only need personal auto coverage for your vehicle. Choosing the right personal policy for your coverage needs depends on a few factors.

If you are not driving another person around from place to place, then your personal auto policy would be sufficient for your home-based business. If your home-based business is a livery, then you would need a commercial auto policy tailored to your needs so that you could protect you and your assets. Even if you go on a vacation, other drivers and family members will be covered even in an accident with a commercial auto policy. If one of your employees is hurt in an auto accident, the commercial coverage will not cover the hurt individual, that is covered by worker's compensation.

The of commercial auto coverage for your home-based business is calculated similarly like your personal auto policy. The number of miles that you drive, who is driving the vehicle, driving record and your claims history will have an impact on your rate.

You need to make sure that your limits of liability are enough to cover your personal assets and your business assets. If you are in an accident, the other party involved can sue you to cover their medical as well as vehicular costs. To make sure you are covered properly, high liability limits like $250,000 and $500,000 are recommended or bodily injury. Property damage coverage is recommended at $100,000.

Many home-based businesses haul equipment from job site to job site. Lawn mowers, power painters, power washers, ladders, landscaping equipment, etc., need to be covered. If you already own a home-based business, then you should have liability coverage and property coverage under a BOP, which stands for Business Owners Policy. If you permanently affix equipment to your vehicle, then you would need to increase your coverage on your vehicle since the generator won't be covered under your BOP.

Whichever policy you choose, personl auto policy or commercial policy, you'll be protected just like regular auto insurance.