Company vehicles may seem like a perk that benefits everyone. After all, happy employees lead to maximum productivity, and getting a lot of work done generally satisfies even the most hard-to-please business owners. There’s just one problem: company vehicles — especially ones used primarily for business purposes — can create a lot of gray areas. What happens in the event of an accident? Is personal auto insurance sufficient? Do you need commercial vehicle insurance?
Personal Auto Insurance: Has It Got You Covered?
Unfortunately, the answer is only “sometimes” — which, in hard times, is just about as good as a “no.” The very last thing you want to discover when the other driver is suing you or your employee for damages is that you do not have enough insurance coverage. There is only a small chance that car insurance companies will cover the damages if vehicles are used more often for business reasons than not. What’s more, personal car insurance “will not provide coverage for any vehicle owned by a business,” according to the Insurance Information Institute (III). In order to fully protect your business (that is, be adequately prepared should a driver sue an employee and your company), it is best to have a commercial auto insurance plan in place.
What About Your Businessowners Policy (BOP)?
Like any responsible businessman or businesswoman, you did your research. You contacted insurance services, asked about free insurance quotes, and made certain you had a Businessowners Policy (BOP) in place. That’s great. It’s perfectly valid insurance coverage for many things… but, sadly, it offers absolutely no coverage for vehicles. Before you add commercial auto insurance to retinue (likely to go along with commercial property insurance and/or a BOP), consider a business umbrella policy. In most cases, these policies will cover owned and non-owned vehicles.
Company vehicles are a luxury — and one that may boost productivity. If you rely on commercial vehicles on a day-to-day basis, make sure that your employees and your company is covered in the event of an accident.