Nowadays, more and more employers ask their employees to use their own vehicles for business use. Then, the company will reimburse an annual allowance for their gasoline and maintenance needs.
However, as an employer, you cannot always control your employees’ actions. And even the easiest of jobs might put them at risk of getting into accidents. Are you prepared for such circumstances?
In this time and age, employees do not always do the things you want them to do, and sometimes, simple tasks turn to terrible tragedies. So take the initiative to purchase commercial motor vehicle insurance to ensure that any mishap can be reimbursed.
Usually, business motor vehicle insurance policies set the boundaries of automobile use of the employee, such as:
- Is the employee obliged to use his own personal vehicle for business purposes? When and under what kinds of circumstances is this applicable?
- Does the employee have collision, comprehensive, or liability coverage to pay for any third party damages in the occurrence of an accident?
- How would the company or the coverage pay the employees damages?
- Is the reimbursement or payment under any state or federal taxes?
- Does the employee assure the employer that he has a driver’s license before driving the motor vehicle?
- Under what conditions will you take away your employees’ driver’s license? There may be certain reasons for these which need to be specified.
- If the employee does lose his driver’s license, does it mean they are also terminated from the company as driving plays a major part of their job?
- Are there any license restrictions present after the incident?
These are just some of the things you might need to study before getting commercial motor vehicle insurance. It may also help if you inform your employees at once what kind of policy you will get for them. Moreover, discuss with them all the limitations and terms in the auto policy to avoid misunderstandings between you and your drivers.
When choosing which policies to purchase, go online and search for offers that involve the employees’ privileges and rights as individual drivers and as a group in your company. Feel free to ask insurance agents regarding your motor vehicle insurance because they are well trained to answer such questions. Before buying your auto policy, make a quick review of its terms and make sure it applies to your company situation.
Or, maybe you can just cancel the whole idea of your employees using their personal vehicles. They might as well use company vehicles in business-related activities.