A Guide to Auto Insurance for Your Employees

If you own a business, you likely deal with numerous meetings, deliveries, and other kinds of transactions a day—which means you either have a company vehicle or use a personal car to get around. No matter the situation, it’s essential to have auto insurance to cover everyone who contributes to your business’s success.

Having an insurance plan is an efficient way of keeping vehicles and drivers safe in case of accidents. Your coverage will also determine the well-being of the person behind the wheel. If you want to know more about the kinds of auto insurance policies that you can consider to secure you, your business, and your employees, then keep reading below. 

Commercial Car Policy

Having commercial auto insurance serves as protection for you and your business, at the very least. If you happen to get into a car accident in the line of duty, then you and your company will be covered by your insurance; after all, since you’re the head of your business, you have the most to lose! It doesn’t matter if you were behind the wheel during the collision; your auto insurance will answer for you accordingly.  

Permissive User Policy

While it’s integral that you and your business remain duly insured, you can also grant another kind of car insurance to cover your employees who will serve as your drivers. They can be included within a permissive user policy, giving them coverage for authorizing them to drive your work vehicle.

But before you make a decision, it’s crucial to talk to your insurance agent. It’s best to discuss if you still need to add more employee drivers, especially depending on how often you need your company car driven. Letting them know will help you provide better coverage for your employees and personalize it according to your business’ needs.

Driving Qualifications for Auto Insurance

Before you decide to apply for commercial car insurance for your employees or grant them permissive user insurance, it’s important to understand their qualifications. You first have to determine if your chosen employees have the potential to drive for you and the company while presenting skills good enough to assure avoidance of an accident.

If you don’t want to pay for higher auto insurance, it will help to take a look at their driver’s license and assess each of your employees. You can inspect their records, especially concerning violations and collisions. Knowing their background can help you decide who to trust with your company’s operations, as most of the time, high-risk drivers can lead you to pay more for car policies.

Non-Owned Vehicle Liability Policy

In some cases where your employees need or prefer to use their car, the business will still be held responsible for the driver’s safety and actions. As such, if your employee were to get into an accident and is at fault, their own car insurance won’t be applicable! In that case, getting them covered with your commercial auto insurance is the only way to save them from the situation. 

But to apply for the right insurance, you need to add a non-owned vehicle liability coverage into your current auto insurance policy. The new policy will apply to all employee vehicles that the company doesn’t own, yet are being used for business reasons. 


Determining the proper commercial auto insurance policy is essential to minimize costs for your business in case an accident happens while on the clock. Knowing a bit about the basics and ensuring all bases are kept can assure that your employees and yourself are always protected! If you’re unsure of how auto insurance will benefit you, then getting the help of a renowned insurance broker near you will most definitely help.

Are you looking for commercial auto insurance in Delray Beach to provide your employees with the correct vehicle coverage? We dedicate ourselves to providing personal and business insurance to residents and businesses in Florida through our auto, home, life, and business policies. Get in touch with us today and start preparing for your future!

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