Feed: Is Business Car Insurance Necessary? - AggScore: 14.0

Is Business Car Insurance Necessary?

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A business car policy is required for anyone using their car for businessPrivate car policies do not include business use beyond commuting. For an insurer, commuting is defined as travelling to and from one fixed place of work, and this is what most people do, driving to the same office everyday. It is worth noting that business use can be something as simple as going out to buy coffee for the works canteen, or delivering a letter. Should there be a serious incident, an insurer and the local authorities such as the police, will want to know all available details. If the insurer then decides not to cover the driver, they could end up being personally liable as well as in serious trouble with the law.An employer also has to be aware that there could also be comeback from an incident involving an employee. Under Health and Safety Law, an employer is responsible for their employee's welfare whilst at work. This still applies in a vehicle if they are on work business. On top of this, in certain circumstances, an employer is also liable for an employee's actions, so if a third party is injured badly in an accident involving an employee the company may be held partly responsible too, so proper business use insurance is a necessity.Business use is separated into several categories depending on the needs of the business and how the vehicle is going to be used. There follows a general description of the different classes, although there will be slight differences from insurer to insurer.Class 1 Business Car InsuranceSpecifically for drivers who own their own vehicle, which they need to use for business purposes as will as private use. You can cover your other half, and private use is usually automatically included.Class 2 Business Car InsuranceThis class of business car insurance covers a policyholder's car for named drivers using the vehicle for business. Generally the policyholder will be the company itself (for company owned vehicles or pool cars), but can be applied to individuals. Nowadays these policies usually include some social domestic and pleasure cover too. In the example above, where a letter is posted on the way home, the reverse can also happen and needs to be covered. For example, an employee runs a personal errand whilst on their way to a meeting.Class 3 Business Car InsuranceClass 3 cover is sometimes described as "commercial travelling". It covers drivers who drive as part of their job, so long as the driving itself is not their job. As an example, class 3 business insurance would cover a sales rep., engineer on call, but would not cover a taxi driver, for this you would need something called "hire and reward".Hire and RewardWhen a trade is specifically for transporting things or people, such as a taxi service or a haulage company, then this sort of insurance is needed, although sometimes it is described more specifically. For instance, insurance for a courier is generally described simply as courier insurance [1], although it is still a form of hire and reward.In conclusion, if your vehicle is used in connection with any business at all, bar commuting, you will need company car insurance [2]. [1] http://www.quote-4.me.uk/courier-insurance.html [2] http://www.quote-4.me.uk/business-car-insurance.html