All vehicles need an insurance policy. From home owned cars to company transport as easy to use and stylish as they are, they still need a good insurance policy.
“With more vehicles you have more risk, so you need more protection,” Nathan Brown said. Brown employed at W.E. Walker-Lakenan insurance agency insists all vehicles, no matter the number, a person or company own; they all need separate auto insurance policies.
Daniel and Henry Co. agent Rob Johnson stated that his employer along with many other insurers offer companies discounts if they possess very large number of vehicles or have low accident rate.
Johnson insists that companies have to pay at least $1 million in various forms of auto insurance coverage for company vehicles and employees. Companies are encouraged to have company specific insurance policies to ensure all company vehicles, used by employees and designated drivers are insured. Company vehicles driven during or after working hours, must be insured.
All insurance companies and agents find it necessary for companies to check motor driving records of employees so that the employers are aware of the employees driving history and can predict careless drivers. Experts encourage this practice and expect the list to be rechecked annually.
When an employee is involved in a road accident while driving a company vehicle, the company uses its, company specific insurance policy to compensate the cost. Employers can withdraw the insurance offer if the employee meets with an accident while not involved in company work or illegal activities.
Employees who use their own vehicles for work related purposes are also usually insured by the company’s insurance policy. Employees who use their vehicles for personal and work use often cause many lawsuits against the company because of the excessive use and increased chance of damage to the vehicle.
“If in any way whatsoever — and I mean any way — you use your personal vehicle or a vehicle titled by your company, it needs to be on a commercial auto policy,” Brown stated. An employee using his own vehicle to work or personal work can easily land a lawsuit on the company if he meets with an accident when insured by the company. Employees with bad driving records can cause problems to the company if they have too many violations and meet with accident often.
Most companies even if they have their own vehicles, use non-owned, hired vehicle auto coverage so as to prevent the company from facing problems when employees meet with an accident in their own car.
