Insuring A Company Car
“Boss, I’ve been in an accident.”
That’s a phone call no business owner wants to get, but accidents do happen. If the accident occurred on the job, is your business protected with company car insurance?
If you are a business owner, you probably already have certain types of insurance in place. For example, you may already have insurance for your leased office space and your business assets, and you may have a liability insurance policy designed to protect your business investment.
It’s a safe bet that you may also have at least the minimum required auto insurance coverage for your own car. But, if you have company vehicles that employees use, or if you use your own vehicle for personal and business transportation, you may also need commercial auto insurance to cover you against potential losses.
Insuring Company Vehicles
Whether you have a fleet of vans or work trucks or just one car registered to the business, you need to make sure you have the necessary car insurance for business use to protect the business from any risk.
Coverage can be tailored to your business, providing the protection you need with deductible levels that make sense for you and your business.
Generally, company vehicle insurance includes the following elements:
Liability Protection – This type of coverage protects you from losses if you, or an employee, is in an accident and causes damage or injury to a pedestrian, a driver or another vehicle. Liability coverage covers the injured party’s medical costs and property damage.
Collision Coverage – When your policy includes collision coverage, you are protected for damage done to your vehicle in an accident, whether you (or your employee) was at fault in the accident or not.
Comprehensive Coverage – This type of insurance coverage provides protection against damage from things like hail storms that can cause significant damage to your vehicle.
Uninsured or Underinsured Motorist Coverage – Although NJ law requires motorists to have adequate automobile insurance opens in a new window, there are still drivers on the road without the coverage they need. In the event you or your employee is in an accident with an uninsured driver, or a driver who is underinsured, this type of coverage will help pay for your own medical care and property damage.
Coverage for Leased or Rental Vehicles – If your company car is still under a lease agreement, or if you rent a vehicle for business purposes, you will want to make sure your insurance policy covers any damage that could result from an accident. With some lease agreements, you could be liable for the entire cost of the lease if you are underinsured.
Employees Using Personal Cars For Work Purposes
If your employees use their own vehicles for work, for example, to make bank deposits or deliveries or to pick things up as part of their job, you should make sure their personal auto policies have sufficient liability coverage.
You may also want to consider adding a non-owned auto endorsement to your commercial auto insurance policy, to protect the business in case of a lawsuit arising out of an employee’s car accident while on the job.
Using A Personal Vehicle For Your Business
If you are using your own car or truck to do more than just get you to or from the office or shop, you should review your policy to find out what it covers. In some cases, you may need to add a company car insurance policy for employees. This is especially true if you’re using a classic car that needs to be protected.
Personal auto insurance policies might limit or may completely exclude business use. This means that if you get in an accident while on the job, you may not have the protection you think you do without a company car policy.
Need a Quote? Contact Marine Agency!
For help determining whether your existing policy insures the company car, and to learn more about insuring vehicles and drivers to protect your business against potential losses, contact Marine Agency today.