I work for a floral firm, am officially self-employed, and file a 1099 tax form. My job entails picking up flowers/supplies, creating arrangements, and delivering the arrangements to consumers. All done in my personal vehicle. Is commercial insurance required to ensure my safety and coverage?
Yes, commercial insurance is necessary for your situation. Since you’re self-employed and use your personal vehicle for business purposes (like delivering floral arrangements), commercial insurance provides coverage that personal auto insurance usually excludes. It protects you against risks specific to business use, such as accidents that occur while making deliveries. It’s advisable to consult with an insurance agent to tailor coverage to your exact needs and ensure you’re adequately protected.
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If you’re using my own vehicle for commercial purposes, I highly recommend reaching out to my auto insurance provider as soon as possible. I would also recommend considering a commercial general liability policy to protect against any potential bodily injury or property damage that may occur.
You might request that the “Employer” add you to their commercial auto policy as well as their liability coverage. What would happen if you were sued for, example, allergic reactions brought on by flowers? Or when you deliver something and trip over their cat, etc. Their broker for insurance ought to be able to assist you.
Yes, commercial auto insurance is typically required for individuals who use their personal vehicles for business purposes, such as delivering goods or services, like in your case as a self-employed floral arranger and delivery driver.
Personal auto insurance policies generally exclude coverage for vehicles used for business purposes beyond commuting.
It’s possible that your personal coverage covers you. Talk to your insurance provider about the nature of your work because you might not be as fortunate the next time. You probably disclosed how you drive the car in your contract, and you don’t want to be found guilty of insurance fraud if it occurs again.