Does My Weekly Delivery to the Farmers Market Need Extra Insurance?
Whether you have a pick-up truck filled with fresh-picked strawberries, an SUV with baskets of corn in the trunk or a back seat in your sedan filled with freshly baked pies and bread, a trip to deliver those goods to the farmers market may seem like any other errand. Your auto insurance company, however, may not think so. Depending on your policy, you may need extra insurance for farmers market deliveries.
Insurance companies draw a hard line between business and personal use of a vehicle. That can be pretty simple if you own a car or a truck that is only used for work purposes. But when you use your personal vehicle instead of your business vehicle for occasional or once-a-week business reasons, the line can become blurry. So, if you use your car or truck to bring items to sell at your local weekly farmers market, do you need farmers market insurance for your vehicle?
Insurance for Farmers Market Deliveries
Insurance companies generally view regular business use of a vehicle as riskier than personal use simply because the car or truck is used more frequently and therefore has more exposure to a potential accident. But when you use your personal vehicle occasionally for business purposes, it's best to talk with your insurance agent or insurance company to understand your coverage and whether you need special insurance for farmers market deliveries.
Generally, a personal auto insurance policy won't cover claims from accidents that happen while purchasing supplies or making a delivery for your business. These types of uses aren't considered the same as running errands or commuting to and from work, which is why your personal auto policy won't cover them.
If you use your vehicle regularly for business purposes, especially if the vehicle is owned by your business, you typically need a commercial auto insurance policy to protect your car and other business assets. When you use your personal car for occasional business use, a “hired and non-owned" auto insurance policy, which is another form of business car insurance, may be the best option.
You may also have an “umbrella" insurance policy that provides additional liability protection above the limits of your home and auto insurance. But if your umbrella insurance policy provides personal coverage rather than business coverage, it usually won't cover any incident or claim related to using your vehicle for work.
Contact a Westfield agent for a review of your insurance policies. Your farmers market deliveries may be a small or large part of your business. Either way, those deliveries require insurance coverage.