If you are like most other small businesses, no other activity of your operation will leave you open to as much liability as the employees and vehicles you have on the highways during the course of the day. It is imperative that you have the correct automobile insurance to cover your fleet, drivers, and employee owned automobiles used in the course of their jobs.
You are undoubtedly familiar with the basic business automobile insurance because it is similar to the insurance you have on your personal automobile. This basic insurance includes:
- Collision - pays for damages that are your fault
- Comprehensive - covers damages by unknown parties and acts of God
- Uninsured and Underinsured Motorist Coverage – pays for damages you incur from an uninsured, underinsured, or hit-and-run motorist
- Medical Payments – coverage for all occupants of the automobile, regardless of who is legally liable for the accident
- Property Damage – damage to other’s personal property in an accident
In addition to your basic automobile insurance needs, business automobile insurance can also provide you with non-owned and hired automobile coverage. This is insurance that I highly recommend if you have employees who travel for business purposes in their personal vehicles (errands, sales calls, etc.). This insurance provides coverage for these automobiles when they are used for business purposes. As I wrote in the introduction to this series, there have been instances in which an employee’s personal automobile insurance company has refused to pay a claim because the employee was traveling for business reasons.