Adding your staff to your business car insurance policy can have benefits across the board. Here is how to go about doing it.
While most personal auto insurance plans include the car owner as well as anybody else who has permission to drive the vehicle, many business auto plans will need greater detail in terms of who is covered as a driver.
Depending on the type of work that is done, a small business owner may have many employees or contractors who drive their vehicle for business reasons. However, you may not be able to add anyone to car insurance if your commercial auto policy is not set up correctly.
That’s why it’s critical to make sure your car insurance for business specifically covers all the ways your workers may use cars, both their own and those owned or rented by your company, to accomplish their duties.
What is business car insurance and how does it work?
If your company has vehicles that are titled in the company’s name, you’ll need business car insurance to cover them completely. Personal auto coverage might protect you if you operate a small business with no workers and drive your car to and from work.
An accident might result in property damage and medical expenses, which can be covered by a business auto insurance policy. If you don’t have insurance,any damage quoted by an auto repair franchise or similar to that sort like a tire shop franchise, for example, your company will be accountable for the charges.
Small company owners and their workers can benefit from business vehicle insurance coverage in a variety of ways. These are some of them:
- Chauffeuring staff around the city
- Getting around to several work locations
- Making deliveries on behalf of the company
- Paying a visit to an existing or potential customer
Business automobile insurance coverages differ by state and depend on the demands of the business owner. There are policies that cover one driver and perhaps a spouse under a business car insurance policy. Other plans may provide coverage for all drivers.
A business car coverage, which isn’t only for huge firms, may protect business owners and workers if driving is a key part of their employment. This insurance is beneficial to many self-employed people since it offers coverage if you are involved in an accident while operating a business.
Keep in mind, though, a business auto insurance policy is not the same as a personal auto insurance coverage. A business car insurance policy’s liability coverage is generally higher than a personal auto insurance policy’s coverage.
If you don’t have business vehicle insurance and are involved in a serious accident, your personal auto insurance policy may not provide enough liability protection for you or your employees. Facing legal troubles is one of the reasons businesses struggle within their first years of operating.
You could further cover yourself by getting in touch with a car crash lawyer. If there ever is an accident involving you or an employee, you’ll want to make sure that if they weren’t in the wrong, then they can be proven innocent – and the others involved in the crash may disagree, which could lead to a court case.
How does business car insurance cover my employees?
If a driver sues your company after an accident happens while your employee was on company time, you can find yourself in a difficult spot financially.
For example, if your employee uses their own automobile and auto insurance for work purposes and gets into a car accident on company time, your company is at risk of being sued along with your employee.
Your employee’s personal auto insurance policy may not be enough to cover the damages so the other individual involved in the accident can sue your company and the employee.
A business automobile insurance with a non-owned auto liability endorsement might help safeguard the firm’s assets in the event of costly litigation. It is also a way to ensure you are looking after your employees. So your employee can operate their personal vehicle while still being covered by your business auto policy.
Regardless of how often your workers use their cars while working for you, non-owned auto coverage, which is part of hired and non-owned auto coverage, is a must-have for your business.
This type of endorsement provides additional coverage over and beyond what your workers’ own vehicle policy may give.
You, as the employer, may be held responsible if an employee causes an accident that results in injury or property damage. The advantage of non-owned auto is that it may usually be used by anyone who drives a car for your company.
Adding Drivers to Your Insurance Policy
When applying for business car insurance, the insurance provider may analyze the risk and increase coverage as needed by listing all workers who may be driving.
Failure to add a driver might result in coverage becoming invalidated when it comes time to file a claim. Underwriters are interested in the driving records of people who have access to the cars, which is why you must notify the company if you have extra drivers.
If you manage a business where one of your workers’ tasks includes driving, such as a cab driver or a contractor, make sure to check all new workers’ driving records. Your charges will be greater if you choose a driver with a shady background, so you might wish to choose someone with a better track record.
If an employee drives their own automobile for the firm, the non-owned auto liability endorsement should be included. It covers workers who use their automobiles for work activities.
Consider the following scenarios in which your company might be held responsible if an employee causes an accident:
- A vacationing employee pays a quick visit to a customer.
- When your office manager returns from lunch, he drops by the office supplies shop.
- On the way home, a supervisor drops by a client’s office to drop off a product sample.
- Your workers use personal automobiles for work reasons.
You can’t just assume that your staff has enough personal auto insurance to cover accidents that occur on business time.
If at the moment you cannot add your employee to the policy, check to see whether they’re protected by their own coverage if they’re driving for your company.
You can even set up your policy where your workers’ personal insurance can be the primary insurer in an accident that needs collision coverage. Your business auto policy can act as supplementary coverage.
Consult an insurance specialist about your workers’ usage of vehicles to make sure you have enough coverage if an accident occurs.
Non-owned car coverage is sometimes restricted by insurers, or it must be bought as a rider or endorsement. Other insurers, on the other hand, provide this coverage as part of a more cheap, comprehensive insurance. To get the correct coverage at the greatest price, you should compare policy offers.
Imani Francies writes and researches for the car insurance comparison site, CarInsurance101.com. She enjoys helping people find the best car insurance policy and rates that meet their specific needs.
