Do I need car insurance for my business?

insurance
business

#1

Modern businesses come in all sizes, from the multinational to the single entrepreneur. Transport needs across business are changing, too.

With the common worker now able to work from home, a practice that is more prevalent than ever, it is now more important than ever in our interconnected world to ensure that your business has vehicles at its disposal. This means that it is essential to find the correct car insurance to suit your business needs.

Motor trades and business insurance

Within the motor trade and transportation sectors, cars play a central role in all business - and personal business insurance is essential. In the course of time, you may be called upon to park or briefly drive the vehicles of customers.

In this case, you will need to be insured with full coverage. For those who do not work in this industry, it is worth remembering that, if you were to need to park or briefly drive a colleague’s car for any reason, business insurance could come in useful.

Employers’ liability insurance

If you run a company and operate with employees, it is essential that you have employers’ liability insurance; otherwise, you risk being fined £2,500 every day that the business is operational. This could be a fatal blow reputationally and financially for any new firm, whatever its starting capital.

Remember to keep your EL certificate somewhere secure but convenient, as you can also be fined £1,000 for failing to present it to inspectors. However, if you only employ family members or overseas employees, it might not be necessary for you to have employers’ liability insurance.

Commuting and business insurance

Unless you work from home, driving and commutes are almost certain to be integral to your business, and so car insurance becomes a question: When do you need car insurance? The divisions of insurance here are between pleasure; commuting and pleasure; and commuting.

Insurance for a commute to the office, or even to drive to a train station car park to continue a commute, would count as business use and be covered by either commuting or pleasure and commuting, but not under social-only car insurance.

Similarly, if you are located such that you do not have to commute by car to work, are near a station or workplace or are certain of a role as a home worker, it is good to consider the option of a social-only policy. This is on the condition that you are positive your circumstances won’t change.

Knowing what you want

As with other parts of the car insurance industry, there are differing levels of cover to fit different levels of need. If - for example - you work in sales, you should look for a commercial travelling policy which will recognise driving as a permanent and significant part of your working day.

There would be a significant investment similarly for delivery drivers or trades such as plumbing in rural areas, where the work involves a high quantity of commuting over the day.

Business use can be for yourself or all drivers. As a spouse can be added to a personal policy, a family business can be run on this policy very successfully. A useful approach in going forward can be to research the best-priced policies, make a list and shop around thoroughly to be certain you will find the best deal.