You own a business, and the employee who usually delivers your flowers or pizzas is not around, or perhaps your company vehicle is out of commission. Before you hop into your personal vehicle and make the delivery yourself, learn what extra precautions you should put in place both for you and the people who work for you.
The Surprising Truth
When you own a vehicle for your own use, most states require that you purchase an insurance policy that covers you in the event of accidents. What you may not realize, however, is that this protection does not extend to damage that occurs during the course of work. Furthermore, “work” can mean delivering flowers or pizzas, but the term also extends to employing your car to sell merchandise, show a home or travel to a client’s house in your capacity as a realtor and bringing food to and from catering jobs.
Even driving as a volunteer for a religious or civic organization is not covered by your standard automobile owner’s insurance. Whether you are the head of your company or an employee who wants to use your own car to accomplish work-related tasks, you need to make sure you have additional liability insurance coverage that goes beyond the standard policy.
A Note About Risk
Particularly if you or your employees are delivering time-sensitive items such as pizzas, there is a perceived need for speed. Consequently, the risk of getting into an accident is increased. Believe it or not, driver sales gigs such as pizza deliverers are the fifth most dangerous jobs in the United States.
What to Look for in a Liability Insurance Policy
There are two different types of coverage you can consider if you need to protect yourself and your employees against accidents while driving. They are:
- Company-owned policies. You pay the premiums, and all of your employees who drive for work as well as their specific vehicles must be included. Although this arrangement tends to be more expensive, insurance companies prefer you obtain this type of policy because they have a clear idea of each and every driver and car they are covering.
- Hired automobile coverage. This is purchased by the drivers themselves and protects them and their vehicles against liability in the event of an accident.
When you use cars or trucks during the course of your company’s operations, you take on special challenges. Talk to your insurance broker to arrange comprehensive coverage that will protect you should the worst happen. You cannot afford to compromise when it comes to protecting yourself and your employees from risk.