Employee car insurance can cost businesses a lot if they don’t select the proper coverage. A single accident can have a negative impact on the company’s budget if the employee causes an accident and the business has to cover the expenses related to it. But business managers can protect their organizations if they follow a couple of guidelines when they purchase car insurance for their employees’ vehicles.
When the employees get behind the wheel as part of their job, the company has to purchase auto insurance because it holds liability in case of an accident. The employees who drive company cars during business hours are exposing the organization to multiple risks. Companies must procure enough insurance to control cost and risk.
Establish minimum required car insurance for all vehicles operated daily
The general rule is that you shouldn’t let your workers on the road if the vehicles aren’t adequately insured. Even if the employees use their personal cars, they should still get business car insurance because they use the vehicles for corporate purposes.
You can require the workers who use the car for business purposes to carry specific auto coverage. But it’s recommended that you pay the upgrade from personal to company auto coverage or provide the employees with reimbursement, considering that they use the car for corporate purposes.
Verify the coverages every six months
Auto insurance means nothing when the drivers don’t adhere to it or let the policy lapse. Most companies renew the policies every six or 12 months, and you should check the coverage regularly to ensure it’s still viable.
Even if your employees are driving their personal cars, you can still check this aspect because they implicitly agreed to allow you oversight of the insurance when they decided to use the vehicle for business purposes.
Get the best insurance
If you want to purchase insurance coverage for all cars in the fleet, ensure you compare the quotes from different providers. A website like Insuranks allows you to compare offers and research the insurance companies to determine if their services fit your company. Insurance providers determine policy rates based on different factors, like age, gender, state of residence and location, vehicle type, driving record, driving habits, credit score, coverage type and other similar aspects.
OSHA states that motor accidents cause 39% of occupational fatalities and around 2000 workers get killed this way annually. Depending on the specific of your company, your employees may be at constant risk as they drive around from one client to another. And even the employees who work in an office are exposed to this danger because they drive personal cars to commute from home.
Car accidents cost companies around $72.2 billion in the USA only in 2019, and as an employer, you have the responsibility to protect your employees both in the offices and when they commute. Suppose one of the workers causes an accident during work hours, and your insurance policy doesn’t cover the costs of property damage and injuries. In that case, you can be held liable for the expenses. But if you have comprehensive coverage, it pays for all the damage, and your company’s budget remains intact.
Now you know why you should pay attention to employees’ car insurance coverage.
