In California, no matter what size the business, there tends to be a crossover between business use of a vehicle and personal use of a vehicle. It all depends on the time of day! While at work, a vehicle will be used for business. But what about after work or on the weekend? Californians love a road trip to the beach, and it is no secret that there will be a number of business vehicles at the local beach parking lot each weekend. A high proportion of vehicles are used for both business and pleasure. Ensuring that the vehicle and driver are covered for both types of use can be of concern, but with the right auto insurance company, staying protected is not a problem.
Ensure that you and your employees are properly covered and correctly insured
Some employees might use their personal vehicle to carry out work tasks. For example, they will use them to run errands for the company – collect supplies, make a trip to the bank or post office, or visit a client for a meeting. This works in the other direction too – with a lot of employees picking up the kids from school in a business vehicle, or even using their work truck to help transport large household items when moving. It is not unusual for these scenarios to happen in any company. Business owners just have to ensure that they are properly covered and their employees are correctly insured.
When is commercial auto insurance required?
Depending on the size of the company, business auto insurance may or may not be required. A business with a sole owner and no employees will get by if the owner has a personal auto insurance policy and uses a personal vehicle for driving to and from work. However, if the vehicles are registered to the company, they are driven by employees or they are over 1 ton, then commercial auto insurance will be required.
What about employees using their personal autos for business use?
When employees use their personal autos for business use, it is vital for the business owner to have non owned automobile liability insurance and be sure their employees have the correct liability coverage on their personal auto insurance policies. Getting into an accident in a personal vehicle while on company business can be sticky. First, the employee needs to be sure their policy covers them for business use of their vehicle. Some business use is covered, some is not. Second, the business owner can also be held legally responsible if an employee is involved in an accident while in the course of their employment. Non owned auto liability would cover the business owner in this case. This is an inexpensive coverage that is often over looked.
This issue can be a confusing issue, but Sutherland-Scherff is here to help. Contact us today to discuss the right kind of insurance coverage for your business.
