My Employees Deliver With Their Personal Vehicles. Do I Need Commercial Insurance?

Did you know that delivery services are one of the most dangerous jobs in Denver, CO? With plenty of traffic and endless construction, it should come as no surprise that accidents are a common occurrence. If your company owns delivery vehicles, they absolutely need a commercial policy, but some companies make deliveries with employee-owned cars. When that is the case, do you still need a policy? Alliance General Insurance Agency has the answer.

Liability

The first thing to understand is that you may be held liable in the case of an accident. Even though your business doesn’t own the vehicle, the driver is representing your company. In the case of a lawsuit, the company is more frequently targeted than the employee. It’s a simple numbers game — businesses usually have more money than any individual driver. For this reason, you need some kind of liability insurance for your drivers. This doesn’t necessarily have to be a commercial policy, but that is a common way to address the issue.

Damages

The business is a more likely target for a lawsuit, but that isn’t the only way you can be hurt financially. If your employee driver is at fault, things can get rather complicated. Typically, a combination of driver and vehicle will be responsible for covering damages. In your case, you might think that it leaves you in the clear, but some situations can get complicated and leave you with the build regardless. What is more important is that personal insurance will not cover your employee or their vehicle. They absolutely need commercial insurance. The question is whether they will have to purchase it themselves or if you will provide it as a perk.

If you want to make sure your business and employees are protected, have a chat with your Alliance General Insurance Agency agent. They can help you find the most reasonable way to keep your people safe as they make deliveries throughout Denver, CO.