What type of coverage do you need?

carIt’s not uncommon for business drivers to use their commercial vehicle for personal use. For example, you may drive your work vehicle around for company use. Then, at the end of the day, you drive it home. What happens if an accident occurs in that period of personal use? Most commercial auto insurance policies can provide you with coverage. However, you might need to take extra steps to protect yourself. Here’s what to know.

Business-Owned Vehicles Driven for Personal Use

When a company owns a vehicle, a commercial auto insurance policy is essential. It protects the company from claims brought by car accidents or other vehicle mishaps. Sometimes, companies let their employees use these vehicles all the time. However, this puts the company at enhanced risk.

If you give a person permission to use the vehicle, as the insurance policyholder and owner, these individuals are permissive users. If an accident occurs off-duty when one of these individuals is using the car, the policy will provide protection, in most cases.

Personally-Owned Vehicles Used for Business

An employee might use their personal car for work. Their personal auto insurance may provide some coverage for business use, but this tends to be limitedly beneficial to most companies and drivers.

In every situation, you should consider the value of making sure they get a commercial auto insurance policy. It can extend the company’s protection in accidents. When a vehicle is used significantly for business needs, it should have a commercial policy.

Non-Owned Liability Insurance

Let’s say that your employees drive their own cars as a part of the work they do for you.

You can usually add a non-owned auto liability endorsement to your policy in this case. It covers the losses an employee encounters over and beyond his or her personal auto insurance if the employee is driving for your business. In this case, your business has protection should the liability coverage on the employee’s vehicle be too low to satisfy a claim.

Take the time to speak to your business insurance agent. Ask:

  • Does the amount of time you drive your vehicle for business mean you need commercial auto insurance?
  • Who can operate your vehicle under the commercial auto insurance policy and have protection?
  • How much personal driving use is acceptable under your commercial auto insurance policy?

These factors differ from one person to the next, and from one commercial auto policy to the next. Anytime you have a vehicle that you use for business purposes, even in limited situations, it is best to have the proper coverage in place. Commercial auto insurance reduces your risks and protects both your company and your personal assets from claims that can happen at any time.

Posted 4:00 PM

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