No business vehicle insurance? You’re driving towards disaster. » SMEInsider

No business vehicle insurance? You’re driving towards disaster.

Business vehicle insurance isn’t just for company cars. If your employees need to drive anywhere for work (outside of their normal commute), whether it’s in their own car or a hired van, you could be liable if someone gets hurt.

In short, you need specific coverage in case someone in your team is involved in a motoring accident – caused by you, by them, or by another employee – while doing something work related. Since you can be held responsible for any costs or personal injuries resulting from a crash, failing to get insurance can drive your business into the ground.

Here are three key tips to help you avoid a total car crash (literally and figuratively):

1. Make sure it’s comprehensive. The business vehicle insurance policy you choose will need to protect you against third party damage as standard, but to be safe, it’s also a good idea to opt for one that will cover a crash involving an uninsured driver as well as unforeseen weather conditions.

2. Bear insurance in mind when selecting vehicles for use in your business. The make, model and engine size will all impact on the cost of your premiums, just as they do when you buy a car for personal use.

3. Reduce the likelihood of making a claim by making sure that you are doing everything you can to avoid damage or accidents. Make sure that on-site parking is safe and secure, write mileage limits into your company policy and, of course, never let your colleagues drive for work if they have been drinking alcohol or taking any other substances that could interfere with their judgment, or if you (or they) are concerned that they are too tired to drive safely.