Defining Driving on Agency Business

maryfmurray

Our liability insurance carrier has informed us to require all employees that drive regularly on agency business to maintain bodily injury liability coverage of 100/300. We are a small non-profit agency in New Hampshire and our issue is how strict of a policy should we have on defining regularly? Should this apply to a person that drives infrequently vs the person that drives weekly, monthly, etc..
We have sent out a survey to all employees and 1/2 responded. The other 1/2 have no insurance at all. This will be a hardship to many of our employees if we require all employees to carry full coverage; so its our decision as to who must carry what level of coverage, but that decision must be made prudently.
Has anyone done insurance verification and license checks for your employees? What types of policies do you have in place? Would anyone care to share with me what they do? Thank you!

ladyzuesse

I am currently going through this - in the commonwealth of virginia you are required to carry liability insurance, or pay a steep fine (basically a bond) to be insured through the state and keep tags on your vehicle.

Defining who drives here is fairly simple. Anyone in our office who does regular errands for the company - bank runs, post office, Walmart etc. which includes our receptionist, maintenance man and accounting assistant. I run all sorts of errands for co. business - interviews, DMV, supplies etc. so I fall in there as well. I used a standard form (be glad to fax you a copy) to request DMV records on each employee, get a copy of their driver's license and then a copy of insurance card or top copy of policy listing coverages. There are several people who might occasionally run an errand - 1 or 2x per month, who don't fall into the requirement for us. I have a "drivers file" for each person that I stuck in the ee folders and update once a year.

Personally, I wouldn't drive without liability on my car (it's the coverage that pays the other guy's bills if I hit someone, not if a tree falls on my car)because it's an invitation for financial ruin if they sue (and they always do - those great neck injuries and invisible scratches on a $10,000 bumper) For years I drove a clunker with liability only (about $300 per year when I was 30 and living in NC) - comprehensive coverage is required now cause I still owe the bank for the "new" car! x:-(

Ack - I'll shut up now - I hope some of my rambling helps you.

Tammy
aka

Margaret Morford

I'd request a definition in writing from your liabuility carrier as to what they consider to be "driving regularly." I'd send them an e-mail stating that you want to make sure that you handle this properly so you need to know what is considered to "regularly driving" on the organization's behalf under your policy. I wouldn't substitue your own definition or guess at what the insurance company means. You do not want the insurance company to be able to wiggle out of coverage after an accident by an occasional driver by saying you should have classified them a regular driver. Make sure you get it in written form, not an oral telephone conversation.

Margaret Morford
theHRedge
615-371-8200
[email]mmorford@mleesmith.com[/email]
[url]http://www.thehredge.net[/url]