Business Vehicle Insurance: Coverage, Costs & Requirements

Business Vehicle Insurance is different from personal auto insurance, it covers the business owner from injury or loss. Business vehicle insurance will protect you, and your employees, in the event of an accident while using a company vehicle for any business practices. In fact, any employed person that uses a vehicle your business owns, rents, or borrows will be covered by your policy, with exception to temporary employees.

You will need to provide your insurance agent with a complete picture of how you intend to use your company vehicles. This way, you get the best coverage for your business needs. For instance, how many vehicles will there be and how many drivers will you have? If there are many, you may need to look at fleet insurance. The numbers for fleet insurance vary between insurance providers, but it may be cheaper than individual vehicle coverage. In short, only those vehicles used by your business are covered by your policy. Likewise, your personal vehicle insurance policy will not cover your vehicle for business use.

Below are some exceptions or exclusions for coverage on vehicles:

• The owner of any vehicle you rent or borrow
• Employees’ own vehicle(s)
• Your partner’s vehicle(s)

Also, note that employees may not make claims on your policy if they are entitled to or covered by worker’s compensation or employer’s liability insurance.  The other coverage areas will give your employees the only means of recovery for the injury.