Coverage for Auto Insurance for Business
Reader’s Question:
My husband and I own a small food delivery service. I sometimes use one of the delivery cars to fetch our son from school. If we get into an accident, will our auto insurance for business provide coverage to our son?
Rachel
El Paso, TX
In most cases, business owners who have a fleet but do not normally transport passengers do not obtain medical coverage. This is because the person driving the vehicle is assumed an employee, and if injured in a car accident, then he or she will be covered under the business’ compensation for its workers. So, this essentially means that if your son gets injured in a road accident while a passenger in one of your delivery cars, then his medical payments will not be covered by your auto insurance for business.
If you have health insurance and your son is a beneficiary, or better yet if your son has his own health insurance, then perhaps you really do not have anything to worry about when it comes to medical expenses whether they were from a car accident or any other type of emergency. Coverage that could be given to you will most likely depend on the circumstances surrounding the accident. If you have been driving the delivery car to fetch your son, then, of course, you cannot expect any recompense from your auto insurance because you used the car for personal purposes. This is why it is very important to review the policy of your auto insurance for business. It would also be very prudent to draw up a driving policy, so that your employees know how and when to use the delivery cars. This way, you save your business from costly lawsuits and potential bankruptcy.