Commercial Auto Insurance and Employee-driven Vehicles

When your business relies on employees to drive, whether in company-owned vehicles or their own cars, having the right commercial auto insurance is essential. Many business owners are surprised to learn that personal auto policies often do not cover accidents that occur while an employee is driving for work. At Garlesky Insurance Agency, we help businesses understand these risks and secure coverage that protects both their operations and their employees.

Understanding Commercial Auto Insurance

Commercial auto insurance is designed to cover vehicles used for business purposes. This includes company cars, delivery vans and trucks, but it may also extend to situations where employees use their own vehicles for work tasks, such as making deliveries, visiting clients or running errands on behalf of the business. Without proper coverage, your business could be exposed to significant financial risk if an accident occurs.

The Risks of Employee-driven Vehicles

If your employees use their personal vehicles for business purposes, your company may still be liable for accidents that occur during work-related activities. Personal auto insurance policies typically exclude coverage for business use, meaning claims may be denied. This is where non-owned auto liability coverage becomes important. It helps protect your business if an employee is involved in an accident while driving their own car for work.

The following are key coverage considerations:

• Commercial auto insurance is required for vehicles owned or leased by your business.
• Non-owned auto liability coverage can help financially protect your business when employees use their own vehicles for work.
• If your business rents or hires vehicles, hired auto coverage may be necessary.
• Implementing clear driving policies and verifying employee driving records can further help reduce your risk.

How Our Team Can Help

At Garlesky Insurance Agency, we work with business owners to assess their unique needs and recommend coverage that addresses both owned and employee-driven vehicles. Our team can help you understand your exposures, select appropriate limits and develop risk management strategies to keep your business financially protected. Contact us today to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.