Home > Workplace Management > Providing Employees with a Company Car

Providing Employees with a Company Car

company carFor many businesses, the idea of providing a company car is strictly 9 to 5. But is the car really just sitting there before and after?

In reality, most company vehicles double for work and personal use. So what’s the best way to insure it? This is actually a common question among small businesses and business owners.

Some business often allow employees to take the company car to do work-related driving such as external meetings and picking up supplies. Some companies are even more lenient and allow employees to take care of personal needs like running errands.

If the more lenient company sounds like you, don’t worry. It happens all the time and you’re not alone. Just be sure you and your employees are insured properly with commercial vehicles insurance.

Company Car Policy

If your company has company vehicles, it’s extremely important to implement a consistent policy. First, if you business owns vehicles that are titled under the company’s name, the vehicles need full coverage. If your situation is different, such as owning a business with no employees, a personal auto policy will cover you.

Company Car Insurance

If your employees are using their own vehicles for business use, be sure their personal auto policies have sufficient liability coverage. For instance, if an employee is driving their own car to do an errand for the company and there is an accident involving another vehicle, your employee’s insurance company will pay the claim up to its limit.

However, if the driver of the other vehicle sues the company for additional charges, a basic business owner’s policy will likely not suffice. Therefore, commercial vehicle insurance including non-owned auto liability endorsement is necessary to help protect the company’s assets from an expensive lawsuit.

Business Owner’s Car

In some cases, a business owner with only one vehicle will use it for both company and personal purposes. In this situation, company car driver insurance is necessary. This is recommended for added protection when it’s not being used for business. This helps protect the owner as well as any family members that might drive the car.

Building a business is a lot of work and remember that any policies you put in place are to protect your employees and your investments. Don’t put anything at risk with incomplete insurance.

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