Personal auto insurance policies are intended to cover the individual for their personal driving vehicles. Some policies, however, may cover business expenses such as commuting a short way to meet clients. Most personal auto insurance companies, however, do not cover business driving. This because it is riskier and may violate the terms of the policy and for that reason, it is best to consider getting a business auto insurance policy.
What Kind of Auto Insurance is Needed for the Business?
If a business owner makes multiple commutes a day, transports people or products, or is in the sales business there are two types of auto insurance to consider.
- Commercial Auto Insurance- Effective for when a business owns the vehicle and/or if the individual uses his or her own vehicle for work.
- Hired and Non-Owned Auto Insurance- This type of insurance covers vehicles that are used for the business but are not owned directly by the business. Vehicles may include employee-owned vehicles that are used on company time or that are rented for the business.
Along with having separate business from personal auto insurance, it is important to have a business driving policy. Understanding Why Your Business Needs a Driving at Work Policy can reduce claims and increase safety for the employees involved.
Writing a Policy
Listed below are a few tips of what to include within the policy to ensure a clear understanding.
- The company vehicle shall be used for only the business and never for personal use unless specifically authorized. Should the employee have authorization for personal use, only the employee is to use the vehicle.
- The driver and the passengers will wear safety belts at all times.
- Cell phone, smart-phone or mobile radios are strictly prohibited while operating a “moving” company vehicle. Should the driver receive a call, they are to pull over and park prior to answering the phone or replying to any messages received.
Safety in Mind
Driving to and from work involves a risk for both the driver and any surrounding drivers or pedestrians. While employers cannot control roadway conditions, they can promote safe driving behavior. Having an official company driving policy shows both the employees as well as the insurer that matters are taken very seriously.