Suppose your manager asks you to deliver some important documents to the other office branch on your way home from the office. Your manager says you will get an hour of overtime pay for this task. The question is: will your personal auto insurance cover you since this is a work-related trip?
What if you get into a car crash and cause £5,000 in personal injuries to the other party? What if the other party files a lawsuit that ends up in £10,000? Do you have coverage from the insurance liability?
Will you pay out of pocket, or will your company cover the additional costs that your policy does not cover? These are crucial questions asked by most employees who use their cars for office-related trips. In today’s article, we will give you some essential details. Read on!
Do you Need Extra Cover?
Most insurance companies in the UK cover their clients when they use their cars for business purposes. However, there are a few exceptions that can invalidate your coverage. For instance, if your employer pays you for the task, your insurer will invalidate the coverage. UK insurance companies have strict policies and rules regarding “livery.”
Bear in mind that sharing mileage reimbursement and ride expenses does not affect your coverage. Likewise, most insurance companies in the UK allow for using your car or vehicle for general business use, such as visiting customers, transporting packages, and attending meetings or seminars.
According to UK law, employers are responsible for their employees’ actions, such as business-related trips and accidents. Generally, the business insurance policy covers vehicles owned by the company or by their employees when used for work purposes. It means you don’t need extra coverage if you use your car for work.
You should discuss the matter with your insurance agent or company to know the type of coverage you have and if the company covers non-owned and rented cars under this policy. Employers need to buy extra car liability insurance if they use rented vehicles.
How to Get Cover for Business-Related Trips?
Although you have a personal auto insurance policy, your insurer may not cover you if you cause a car accident or get injured. For instance, this often happens when your employer pays you extra money for the task (livery.)
That’s why your employer needs to add you to the business insurance policy to ensure you get cover when driving for work-related trips. Ask your employer to discuss his or her business needs with their insurance agent so you can get the best coverage while driving for the company.
You can also talk to your insurer or agent to learn the type of coverage you need to add to your policy if you make frequent trips for your employer. Bear in mind that your employer will consider your driving history, claim records, and other factors before adding you to the company’s business insurance policy. Most employers want to ensure their employees are not a liability to the company.
Final Words
Most insurance companies in the UK will cover you if you use your car for work. However, the exception is that you don’t get extra pay or overtime fee from your employer. Talk to your insurance agents and discuss the matter with your company’s manager to ensure the best coverage.
Im in the us, can you provide information on company car insurance for Americans?
ReplyDeleteI was under the impression that my boss had been covering my insurance. Since the whole COVID-19 struck, he stopped paying it to save money and insisted that he had told me. I think it is a good idea that everyone know their coverage at all times. Had I gotten into an accident these last few months, I could have lost everything.
ReplyDelete