Business auto insurance coverage has a lot of gray areas. For example, if an employee runs an errand for their job using their personal vehicle and gets into an accident, which pays out: the employee’s insurance or the company’s?
The truth is that it’s complicated; the answer depends on the extent of the company’s coverage and the circumstances of the accident. That’s why business owners need to understand what they’re paying for when they purchase commercial car and commercial truck insurance in Glendale, AZ.
One common question is whether the employee’s personal insurance has an impact on the business’s insurance, particularly when they are driving a company vehicle. Most personal auto policies have an exclusion stating that there’s no coverage for use of a vehicle furnished or available for the policy holder’s regular use – such as company vehicles. However, if the employee is using their own vehicle on behalf of the business, their personal auto insurance may have an impact.
As you shop around for commercial car and commercial truck insurance, be sure to take into consideration all the potential risks. If you’re unsure how much coverage you need to protect your business, talk to an independent insurance agent for advice.