Co-Mingling Company and Personal Auto Risk
After an automobile accident, negligence is often alleged against as many parties as possible and not just the driver; this routinely includes the title holder of the vehicle. Therefore, when looking at your construction company’s insurance program, who owns a vehicle is just as important as who's driving it.
Standard business automobile policies contain many limitations for vehicles that aren’t owned by the business, and almost all of these exclude coverage for the owner of a vehicle. This “owner” could be anything from a rental car company to an employee or executive.
This type of situation can occur when a construction owner buys their own vehicle, but provides it to the business to use. Also, another example is a business that agrees to insure the personal automobiles of its salesforce. Regardless of the circumstance, not properly amending your policy could leave these individuals without coverage completely.
Simply adding a vehicle to the business automobile policy usually isn’t enough to automatically extend coverage to the owner. There are solutions, but it requires carefully amending the policy language and sometimes even putting in formal lease agreements with the vehicle owner. Otherwise, the owners could be left bare without even knowing it.
Depending on the circumstance, it’s often advisable to secure personal auto insurance for a personally owned vehicle. Extending coverage from a business policy is possible, but it takes much more than simply adding the vehicle to a schedule. Talk to an Assurance ‘A’ Team member today to see what works best for you and your company.
ABOUT THE AUTHOR