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The need for business car insurance


When using a car for official purpose, a business policy is mandatory. For instance, using office transport for attending a business meeting or posting a letter on behalf of the business falls under the category of official work. Any damage to the vehicle or injury to the passengers will be covered by a sturdy business car insurance. Furthermore, if the other party is injured in an accident, the employer may be held responsible for his employee’s action. Therefore, a suitable insurance for office vehicles is crucial.

The insurance policies for business vehicle are categorised under the following tiers. These tiers reflect trivial differences while offering similar benefits.

Business Car Insurance: Tier 1

This type of business auto insurance is aimed at vehicle owners who drive for business and private purpose. This cover can be obtained for domestic and social use as well, and can be extended to the spouse as well.

Business Car Insurance: Tier 2

This category covers the policyholder’s vehicle for named drivers. Typically, the company is the policyholder, but can involve individuals also. This policy also covers domestic, pleasure and social factors as well. For instance, when an employee runs a personal chore while on their way to a meeting and meets an accident, he/she will be paid for the medical expenses, alongside the damaged vehicle.

Business Car Insurance: Tier 3

Popularly referred as “commercial travelling”, this class of auto insurance provides coverage to vehicle and driver, because travelling is considered as a part driver’s occupation. The cover does not hold valid for organizations that transport goods or passengers in lieu of payment. A perfect example of tier 3 business car insurance is sales representatives travelling on their own for official purpose.

Hire and Reward Policy:

When transportation is the core objective of businesses like courier services and taxi hire, then hire and reward policy is a necessity.

Policy Add-ons:

Depending on the level of protecting your business and employees, you can take add-on insurance to compliment your vehicle insurance policy. Even the drivers are protected against accident and harm while on their official duty.

Depending on your requirements and needs the insurance level should be created, an excessive coverage or under coverage is equally wastage of your investment.  The essence of the business car policy should offer higher payments and cover the vehicle, passenger and driver.

Lastly, if a personal vehicle replaces an official vehicle during change of plans, then it becomes sole responsibility of the business to be liable for the private vehicle and driver as well. Such situation is covered under the business car policy as well.