All drivers must have auto insurance, may it be owners or non-owners. In most cases, it is offered to private individuals who drive vehicles for personal use. The individuals are the ones who pay for the premiums, and therefore they are taking the responsibility to search for rates that are affordable.
There is also other side of car insurance which is not solely taken or paid by the private individual and it is called business car insurance. As most of us know, businesses are separate entities that have separate responsibilities from that of its working employees. A business has its own name and assets to protect. During road mishaps, it should take liability or responsibility to the accident apart from whoever drives the vehicle, as long as it was used for business purposes. In other words, business car insurance is a type of insurance for vehicles that are used in carrying out business operations. It is paid by the company and forms part of their asset.
When Do Business Car Insurance Come In?
When an employee used the company vehicle to perform his job and happens to meet an accident at his fault, the business insurance may be used to cover the damage. Just like personal car policy, the policy must have the basic liability coverage as this is required by law. It pays for the bodily damage and property damage. Likewise, if the defaulted party complains against the company for the accident and files a lawsuit, the insurance will also come in order to pay for the demand.
The company can also get higher coverage for the business vehicles. It can opt to get comprehensive, collision or uninsured motorist coverage as they see necessary. Although these are not required, it will surely protect its investments and assets in case accidents happen.
What if an employee used his personal car to do business and meets accident? An example of this is that the employee took stocks from the warehouse to be delivered to the clients. Since there is no available company car, he used his personal car instead. On his way to the client, he met an accident at his fault. In this case, he can actually use his personal insurance to pay for the damage or injury he caused. However, since his travel was for business purposes, the car policy can come in. This is especially true if the faulted person complaints against the company.
The requirements and process for applying business car insurance could be very tedious and rates could be high. However, as long as the company understands the importance of the insurance, it needs to get one. Anyway, there are plenty of providers who can assist them in the process.