Verify Proper Coverage Is in Place for Your Company Car
Many employers provide employees company cars. It is either told or assumed by the employee that insurance issues are covered by the employer. But commercial auto insurance policies are different than personal auto insurance policies. How can you ensure there’s no coverage gaps and appropriate coverage is in place?
If you provide a company car or if you are driving one, verify that corporate insurance is in place and that it provides primary coverage. Also, check the liability limits to confirm that they are adequate. Carefully adhere to any restrictions on personal use, including possible prohibitions of other drivers like family members or other employees.
There could be an assumption of personal auto policy to provide excess liability coverage. It is important to know who is driving company cars. If the driver does not own an auto but does have personal auto exposure (e.g., company car, borrowing friends' cars, etc.), there should be a personal auto policy purchased with a named non-owner coverage or related endorsement. Note that this endorsement could also be necessary if you need to purchase a personal umbrella policy.
Learn more about IMT Insurance Commercial Auto products or contact your local IMT Agent to discuss your coverage needs.
