You may think that you have covered yourself by asking them to drive your car when conducting such errands instead of driving their own car.
You may not need a fleet of commercial vehicles if you don’t run a service or manufacturing company. If you aren’t sending technicians out for house calls, you may not see the point. However, you may still need your employees to drive a car on occasion for business, such as for picking up clients from the airport or buying needed supplies for the office.
You may think that you have covered yourself by asking them to drive your car when conducting such errands instead of driving their own car. After all, if they are in an accident, your personal insurance will cover it, right? Wrong.
In Arizona and other states, personal Scottsdale auto insurance will not cover damages or injuries resulting from an accident that took place while the driving was conducting business. That means that even if your employee was driving to the post office to get stamps for your office, they were officially conducting business while driving the car and they are not covered under their own personal auto insurance policy nor your personal auto insurance policy.
Uber drivers, pizza delivery drivers, office workers who run errands in their own cars, and others are all taking a huge gamble without investing in commercial auto insurance. None of them are covered under their personal auto insurance plan.
While you may not have a fleet of vehicles or even a single company car, you will have to purchase commercial auto insurance if you ask your employees to drive your car to conduct any business, no matter how minor.
You may think you can get away with this arrangement if the car isn’t marked for business. Otherwise, how else will the police office putting together the accident report know that the driver was conducting business? Anything could happen that could tip him off. Your driver could say something like, “My boss is going to be so upset his car is damaged” or “I have to hurry up and get back to the office,” tipping off the officer. Not only will you be “discovered” and lose coverage from your personal auto insurance plan, but you could even be found guilty of insurance fraud for trying to conceal this fact. Your insurance plan can also be cancelled.
The only way to protect yourself, your employees and your business is to buy a proper commercial auto insurance policy that covers any cars that could be driven for business use. Working with a Scottsdale business insurance broker can help you find the right policy to fit your needs and your budget.
Smart Move Insurance is a business insurance broker that has been helping clients throughout Arizona find the right insurance products for their business and their personal needs for many years. We’ll let you know exactly what your legal obligations are and then find an insurance product that covers you while also helps you stay under budget. Call us today to learn about our insurance services in Arizona and to find the right commercial auto insurance plan for you.
