Driving is often a big part of work, even if it’s not in the job title. Driving to work meetings or work errands are common tasks that require a vehicle. This poses the question: does my company need business auto insurance if we don’t own vehicles?
Even if your business rents vehicles, you could be held liable if an accident happens while doing work-related tasks.
Check out the rest of this blog post to learn more about whether your business needs auto insurance and what type may be right for you.
Employees Using Personal Vehicles to Do Work
There are many situations in which an employee may be using their personal vehicles to complete work-related tasks. Driving to meet with clients or running errands on behalf of a company are common situations when personal vehicles are used for business purposes. If personal vehicles are being used often for work, it’s a good idea for your business to get auto insurance.
Even though these vehicles are not the property of your company, if an employee is involved in an accident while working, the company could still be liable. Business auto insurance would protect your business in the case of an accident when a personal vehicle is being used for work.
Rental Vehicles
While your company may not own any vehicles, if you rent vehicles, you’ll want to get auto insurance. If there is an accident while an employee is driving a rental vehicle, your business could be held liable if you don’t have insurance. Thus, if your company uses rental vehicles, you will want to invest in auto insurance to protect your business in the case of an accident.
What Type of Auto Insurance is Right for My Business?
Different auto insurance has different levels of coverage. To determine what kind of coverage you’ll need, you will want to consider who is driving what kind of vehicles on behalf of the company. Some coverage only covers vehicles that the company owns while other coverage will also include vehicles that are rented or leased.
The most comprehensive kind of auto insurance covers owned company vehicles, rented vehicles, and personal vehicles that employees may be driving for work. Oftentimes, this is the auto insurance that your company will want to invest in to ensure that personal vehicle use is included in your coverage. However, if your business exclusively uses owned and/or rental vehicles, other options may provide the coverage you need at a cheaper price.
Get Business Auto Insurance Now
The bottom line is if employees are required to drive for work, your business probably wants to invest in auto insurance. Portal Insurance can help your company find the type of auto insurance that works for you to ensure your business is protected from liability in the case of accidents. Tell us more about your insurance needs and we’ll match you with an expert to help guide you through the process. Get started with a quote today!
