Why Companies Should Adequately Insure Their Vehicles

Glass breakage, theft, fire, damage to the vehicle in the event of a collision, bodily injury to the driver, legal protection, loan of a replacement vehicle, and other reasons should force companies to insure their vehicles. An insurance agent at Insurance Solutions Inc. in Cullman, AL can help you to compose the most suitable policy, depending on the age, value, use, and a number of cars involved. It is an obligation for all company motor vehicles to be insured. There should be no exceptions. More specifically, company cars must be covered by a so-called “third party” liability insurance. This means insurance, which provides coverage in the event of damage (material or bodily) caused by the company vehicle, following, for example, an accident, an explosion, or a fire.

Why Insure A Company Vehicle in Alabama?

In addition to damages caused by the company vehicle to third parties, other consequences can arise. For example, the car itself may be involved in an accident, the driver injured and equipment damaged. This is why it may be necessary to choose an insurance policy offering the following guarantees, in addition to third party insurance:

  • In the event of an accident incurring damages, the coverage guarantees coverage
  • If the driver is injured, the company is responsible
  • In some cases, insurance takes care of towing and roadside assistance
  • the guarantee of services such as roadside assistance and towing;
  • Insured coverage of transported items

What About Alabama Company Cars?

Company cars used to transport items differ from company cars used by employees upon employer consent. These are driven to conduct the company’s business, whereas the latter can be used for personal purposes, which means it can be driven from the employee’s home and the workplace if the employer has explicitly given his consent to this. How do employees protect themselves when driving a company vehicle? If you own a vehicle and it is insured, it could provide you with coverage. While an employer could ask an employee to carry insurance on their own vehicle when driving a company vehicle, the company should acquire an insurance policy for full compensation in the event there is an accident.

Types of Alabama Company Insurance

To insure company vehicles in Alabama, there are two options to consider:

  • Insure each company or company vehicle by an individual policy
  • Take out a fleet contract for several vehicles

 The choice of having a fleet policy means that the policy will be easier to manage since everything is under the same policy.

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It is important for companies to have adequate insurance coverage to handle work-related accidents in a company vehicle. The company is going to be responsible for any liability claim. This exposes the company’s bottom line and reputation. In addition, it could create conflict between both the employer and employee, which can become a messy situation to avoid. It is recommended that you contact Insurance Solutions Inc in Cullman, AL today to discuss your options.