driving personal vehicle for work clock time

DRIVING PERSONAL VEHICLE FOR WORK CLOCK TIME FULL

All three jump out of the car after the accident gripping their necks in agony. ABC’s insurance pays nothing.Įxample 2 – Mary causes an accident that results in damage to her car and damage to a vehicle stopped at a stop sign.

Mary’s auto insurance also pays for the damage to the parked car. Insurance Response – Mary’s auto insurance pays for the damage to her car less the $250 deductible. Also assume that ABC has a business auto policy with hired and non-owned auto coverage at a limit of $1,000,000.Įxample 1 – Mary causes an accident that results in damage to her car and damage to a parked vehicle in the amount of $5,000. Assume she has a personal auto policy with $300,000 of liability coverage and $250 deductible collision protection. She is doing an errand for her employer, ABC Manufacturing Co. Mary Smith is driving her 1999 Chevy to the office supply store. Let’s walk through a few claims to illustrate how coverage will respond. Even after buying the extra coverage, the business auto policy will only pay if there is no insurance on the employee’s vehicle. It also does not change the fact that employee’s coverage is still primary. However, it is generally not worth the extra cost. Most business auto policies include no coverage for damage to an employee’s car. If there is not enough coverage under the employee’s policy then the employer’s business auto policy will step in to pay the excess amount if the employer’s policy has been endorsed to include “employees as additional insured.” Therefore, any accident caused by an employee while driving his or her own car will be paid first by the insurer of that vehicle. Remember, the insurance on a particular vehicle is always primary. Most insurers will add “employees as additional insured” for a small extra premium. The intent of the business auto policy is to protect the company (employer) from suit. The standard business auto policy provides no coverage for the employees that are sued even if the accident took place on company time. If an employer does not own any vehicles, “hired and non-owned” auto liability insurance is needed to provide the coverage outlined above. The company is then protected if an employee causes an accident. Employers must be sure that their policies provide coverage for “non-owned” and “hired” autos. Under common law, employers are responsible for the actions of their employees. The liability section of the Business Auto Policy provides protection for bodily injury and property damage for which the insured company is liable. Salespeople using their cars primarily for business may find that their premiums are increased. Most insurance companies will not increase premiums for occasional business use.

DRIVING PERSONAL VEHICLE FOR WORK CLOCK TIME FULL

Full disclosure of business use will prevent coverage problems once a claim occurs. Explain to the agent or insurer the business circumstances in which the vehicle will be used. If an accident occurs while an employee is operating their car on an errand for the employer, the employee’s personal insurance is the primary coverage, and should be looked at to provide protection.Įmployees should check with their own insurance carriers to be sure of their coverage. The insurance purchased on a specific vehicle is always “primary.” The policy covering a vehicle pays first before any other policy. General business use of a vehicle (picking up supplies, visiting customers, attending conferences) is not a coverage issue under most policies. Delivery services including package delivery services, pizza delivery, and flower delivery are considered livery – coverage is excluded. Share-the-ride expenses and mileage reimbursement do not jeopardize coverage. Using the vehicle for livery will invalidate coverage under many personal auto policies. The only exception is “livery” – carrying goods or people for a fee. Most personal auto insurance policies will provide protection for vehicles titled to individuals and used for a business purpose. Most personal vehicles are insured using a “personal auto policy.” Most businesses that own vehicles utilize a “business auto policy.” The following discussion is based on the above assumptions. It’s a confusing topic filled with many opportunities for misunderstanding. One such question involves employee use of personal vehicles on company time. I get asked certain insurance questions regularly.

Driving personal vehicle for work clock time