Choosing Auto Insurance

Special Coverages to Consider When Setting Up Business Auto Insurance

9 April 2020 by Gene Jones

Business auto insurance policies protect company-owned and company-used vehicles, just as personal auto insurance policies provide coverage for the vehicles that individuals use and own. When setting up a business auto insurance policy, however, there are a few additional coverage options to consider including in your business' insurance policy.

Owned Vehicles Coverage

Owned vehicle coverage is the part of a business auto insurance policy that actually covers the vehicles that your business owns. While this coverage might seem obvious, it's important to make sure that it's included if your company owns vehicles because not all business auto insurance policies are intended to cover company-owned cars. Some only cover other workers' cars that are used for work.

If your business owns commercially registered vehicles, whether they're cars, vans, limos, large trucks, or other vehicles, the business needs owned vehicle coverage.

Non-Owned Vehicles Coverage

Non-owned vehicle coverage is an optional protection that covers vehicles that your business doesn't own or pay to use. Business owners commonly need this coverage if employees drive their personal vehicles for work. In this scenario, the employee owns the vehicle but the vehicle needs some commercial coverage because it's being used for non-personal driving. Non-owned vehicle coverage provides the necessary protection.

Non-owned vehicle coverage provides liability protection while an employee's vehicle is being driven for work. Should the employee cause an accident while driving for work, this coverage will pay any legal fees or settlements that follow. It won't pay to repair damage to the employee's car, which is the employee's responsibility to insure against.

If your business has employees drive personal cars for work, your business needs non-owned vehicle coverage. Common examples of businesses that get this coverage include restaurants that offer delivery and companies with sales reps.

Hired Car Coverage

Hired car coverage is another optional protection that covers vehicles that your business rents or hires on a short-term basis. This coverage provides liability coverage in the event of an accident, and it also can cover damage to the car. A single business auto insurance policy with hired coverage can cover multiple rental cars.

If your business regularly rents vehicles for work-related driving, hired car coverage should be a permanent fixture of your business' auto insurance policy. If your business owns cars but doesn't regularly rent them, you might need to add this coverage temporarily when an owned vehicle breaks down and someone uses a rental while repairs are made.

For more information on your options, contact business insurance providers.

Share  

Search