Businesses rely on both owned and non-owned vehicle. The non-owned vehicle could be hired, owned by a partner or employee. In case the autos are involved in an accident, this could result in multiple financial set-back.
In the event of an accident, not only will you have to repair yours but the one damaged, but the one damaged. There’s also the possibility that passengers involved may also suffer severe or fatal injuries. Regardless of who is affected, you should put in place adequate protection against unwanted outcomes.
Auto liability claims can be pretty costly given rising medical cost and technology enhancements in autos. You must have your own insurance to cover you and your business.
1. Expand Your Coverage
Assuming you have an existing business auto policy in place, you’ll have to go a step higher. This will be through non-owned auto liability coverage.
This is designed to protect you if an employee uses their car for business purposes and is in an accident. Those quick bank trips or getting lunch for the team are examples. The coverage is very affordable.
2. Complete Ban on Personal Vehicle For Business Purpose
Some companies may consider a complete stop to using an employee’s automobile while on official duty. This is even encouraged resources won’t permit you to expand your auto insurance coverage.
3. Individual Auto Insurance Coverage
If it’s impossible to forbid employees from using a personal vehicle for business purposes, you should instruct that they have adequate auto insurance coverage. This will provide a cushion before your insurance is considered.
4. Employee to Go Through a Mandatory Safe Driving Program
While this might even help get a lower insurance premium from some insurers, this also helps to lower the rate of accidents. Please make it a company policy that all individual, whether driving a business owned or non-business owned vehicle, should undergo a mandatory safe driving program.
Without the right coverage in place, you are exposing your business to significant risk. In the end, you, your business and your employees are fully protected against risk now and in the future.