Q: If I purchase a vehicle in my company name, am I putting my business at risk If I am sued in result of an accident?
I plan on purchasing a truck used primarily for work, but also for personal use. In order to utilize tax benefits such as "bonus depreciation" the vehicle has to be titled in the company name. I fear that if myself or my spouse are driving the vehicle and are sued in the event of an accident, my business and its assets could be at risk. How risky is this and what can be done to mitigate risk to my business?
A: In short, yes. As an owner of the vehicle, the Company is liable for up to $15k/person, $30k/collision for bodily injury and up to $5k for property damage.
If you injure someone in the course and scope of your work, the Company is liable for all damages you cause. If you have a commercial auto policy of sufficient limits, this will protect your business. You also need a personal auto policy to cover your non-work related use of the vehicle. Discuss with your insurance agent.
A: In your policy you should include your wife and let your insurance agent suggest what coverage you should have in California. since the policy is tax deductible, you could also supplement it with an umbrella. Best of luck .
Maurice Mandel II agrees with this answer
A: As the previous answers state - you cover any risk you might have with insurance. Sit down with your insurance agent and let them know how you plan to use the vehicle and what coverages would then apply. It's also good to get an umbrella policy - which surprisingly are quite affordable.
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