Top 3 Reasons Why Your Business Needs Insurance (When Providing Company Cars to Employees)

A business must have company cars to get employees from one place to another. Those places being the office, client’s houses, or if your employee travels a lot for work.

For some businesses, having employees drive many miles a week is necessary, but we forget that driving can be dangerous.

Company car insurance

Even if the person is an experienced driver, accidents still happen because of the weather, other drivers, cyclists, pedestrians, poor road maintenance, or traffic.

All of these variabilities make it essential to have the right auto insurance to protect you and your workers while traveling.

1. Customized Policy Features

If you are worried about getting a quote that will not suit your company’s needs, remember insurers can customize your policy. You can add features to the coverage that suit you and your business.

According to BrokerLink, “there are many factors that decide how you compare with other drivers in terms of risk.”

Companies can customize your plan based on where your office is located, where your employees travel to, driving experience of your employees, and driving records of your workers.

2. It Is the Law

In Canada, no one can drive a car if the automobile is not covered by auto insurance; this includes business cars also.

Car insurance can seem like a significant expense if you have many employees who drive vehicles provided by your company.

But, in the chance of a severe accident, total cost without insurance can add up to thousands of dollars and give your company a bad reputation.

A study done by the Capital Region Intersection Safety Partnership states that a collision with only property damage can cost between $11,000 – $14,000.

This is not including any accidents that cause injuries or are fatal.

3. Insurance Covers more than Just Collisions

Car insurance does not stop at covering just accidents caused by collisions. What if a company vehicle is stolen, vandalized, or damaged in a fire?

Many insurance companies provide coverage on all the major accidents that could happen to your employees and the car that is provided to them.

There are plans that cover all liability expenses with insurance, including medical costs, lost wages, legal defense, and court fees.

Insurance companies protect you and your employees with comprehensive coverage, including theft, vandalism, fire, and water damage.

Different plans give accident forgiveness that enables you to manage medical expenses because of an auto accident, regardless of who is at fault.

The Bottom Line

There are many different plans for car insurance coverage depending on what is required by law, what you choose to add on to your company’s policy, and the locations your workers will travel.

To make sure you have the right plan, it is vital to be knowledgeable about the different requirements. Make your life easier and driving safer with a broker to guide you to find the right insurance coverage for your business cars.

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