EE's using own vehicle for business purposes

Jayhawk

We have a situation where our employees are required to transport clients to certain appointments occasionally. According to our insurance agent, if the employee is involved in an accident with a client in their own car, it is their primary auto insurance that is to cover the liability and physical damage. Their primary also covers any liability to the client. Our company's non-owned auto liability only covers as secondary. I was wondering if anyone else had the same type of situation out there. I always thought that if you were using your car for business purposes, then the company's insurance covered any liability or physical damage if you were involved in an accident. Any comments on this subject would be appreciated.

Mentel

Our employees must cover their own vehicles while on company business. Company only insures the company owned vehicles. I think this is common. Employees are paid $.36 per mile and this is to cover vehicle expenses like insurance.

Pork

MY EXPERIENCE IS THAT COMPANY LIABILITY, THE DEEP POCKET STARTS AT SOME POINT DEPENDING ON THE EMPLOYEE' COVERAGE. In one company I have been, the company requied us to provide a certification of insurance, before we would be allowed to use our personal vehicle to conduct business on behalf of the company. IN that company I owned and leased the company car and the company paid me the lease & insurance cost plus milage.

In my present company, we have made notice to our employees of the $100,000.00 deductable on our liability coverage, which is the starting point for company liability, ( the deepest pocket) which means to the employee, that we should have at least liability coverage up to a $100,000.00. At that point the companies' liability can be included. If I do not have coverage up to $100,000.00 and I had an accident, then I would be, possibly, responsible for the gap! I recommend you discuss the issue with your liability insurance company.

HOPE THIS HELPS! PORK

lorrie

In our company there are some management employees who drive company-owned vehicles which are covered under the company insurance policy. Our sales employees drive their own vehicles and must provide their own vehicle insurance.

If an employee is driving their own personal vehicle and is in an accident, then their personal policy is responsible. (However, any injuries to the driver will likely be covered under work comp if they are on the job at the time of the accident.)

Theresa Gegen TX

Your carrier is right. But the company will be on the hook for any damages after the drivers insurance is exhausted. So you may want to have the people who drive cars for work purposes give you a copy of their insurance card and keep an updated copy at all times.

If the person lets insurance lapse, and gets into an accident, the only one with money will be the company.

Good Luck!