Car insurance - Business Use?

mazza111

When I was in support work, it was the lowest form of business insurance, that usually states, driving to and from places (not singular) of work.

However, if you are expected to take clients out in your car (I wasn't) then you may need to up this to the next level.

rs65

vaio wrote: »

Care to expand on what circumstances might give rise to a third party claim against an employer that wouldn't be covered by the employee's ordinary business use insurance?

If there are any then it's maybe something I need to consider with the guys that work for me using their own cars (with class 1 cover)

The policy only covers/defends the insured. I suppose its possible that a third party could choose to pursue the employer as well as the vehicle owner.

Its not common, I have only come across it in relation to using personal cars for the business of NHS, Mod or the like.

See here https://forums.moneysavingexpert.com/discussion/3593841

vaio

Thanks, but I'm still none the wiser about what circumstances might give rise to a third party claim against an employer that wouldn't be covered by the employee's ordinary business use insurance?

Any examples spring to mind?

Nearly_Old

vaio wrote: »

I must be not understanding something but I thought any business cover will indemnify against third party claims, it's sort of the whole point of it.

Similarly, I also thought "personal business" was the same as "class one"

It was about 9 years ago that this arose and personal cover applied to you as an individual for 3rd Party cover whilst driving in the course your personal business, Class One extended this to your employer's business. My previous employer required 3rd Party cover for themselves as well as for the employee. They wanted to cover themselves in case anyone tried to take action directly against them. The letter I got from the insurers clearly stated that I was covered 3rd Party whilst on my employer's business and that my employer was covered against any 3rd Party claims.

vaio

Thanks, but I still don't see what circumstances might give rise to a third party claim against an employer that wouldn't be covered by the employee's ordinary class 1 business use insurance?

Can anybody come up with some examples?

rs65

vaio wrote: »

Thanks, but I still don't see what circumstances might give rise to a third party claim against an employer that wouldn't be covered by the employee's ordinary class 1 business use insurance?

Can anybody come up with some examples?

The employer isn't covered at all by an employees policy.

vaio

rs65 wrote: »

The employer isn't covered at all by an employees policy.

Now I am confused, I thought the thread was about...........

Nearly_Old wrote: »

.....Generally an employer (my last one did) requires Business Insurance that specifically indemnifies the employer against any 3rd Party claims.........

or

rs65 wrote: »

It would be something like indemnifying your employer in the event of an accident whilst the vehicle is being used for business purposes. Or holding the employer harmless.......

mikey72

vaio wrote: »

Care to expand on what circumstances might give rise to a third party claim against an employer that wouldn't be covered by the employee's ordinary business use insurance?

If there are any then it's maybe something I need to consider with the guys that work for me using their own cars (with class 1 cover)

Normally, I would have thought the employee's car insurance covered most risks. When I was employed, I was (as far as I was aware) insured for driving my own car to different sites for the company. I was insured to carry their equipment in my car, but the equipement was insured by them, they couldn't claim off my insurance.
Other employees could claim off me if I injured them while driving them anywhere.

But, I always thought they were always jointly liable. So if for any reason my insurers found a way not to pay out, (say I'd been banned and not told them) my employer could be jointly sued, as I was acting on their behalf, and they should be ensuring I was acting correctly when employed by them. And there is no way I know that they can ever lose that liability.

rudekid48

All employers should already have insurance in place that covers their liability as a result of the actions of employees - whilst the employee is engaged in the employers business - e.g. transporting a tin of paint from one site to another.

For the purpose of this discussion, if the car is owned by a private individual then all they need is class 1 use to cover them driving to more than a single place of work.

If the vehicle is owned by the employer then the OP would not need personal insurance anyway as it would be covered under the employers fleet policy.

Nearly_Old

rudekid48 wrote: »

All employers should already have insurance in place that covers their liability as a result of the actions of employees - whilst the employee is engaged in the employers business - e.g. transporting a tin of paint from one site to another.

For the purpose of this discussion, if the car is owned by a private individual then all they need is class 1 use to cover them driving to more than a single place of work.

Not always true as my contract of employment clearly stated that when taking the car allowance and mileage payment in lieu of the company car option your insurance shall specifically idemnify the Employer from 3rd Party Claims and that Personal Business Use was not acceptable.

I agree with mikey72 (post #19) that there is always going to be a joint liaibility as the Employee is acting on the Employer's behalf . As this is a liability that the Employer will always carry then all that is happening is that the Employer is insuring themselves against that liability.

Over the last few years I was with that Employer we had to supply annually copies of MoT certifcates, insurance certificates, etc and confirm that our vehicle was being serviced, etc. As the company was Danish I had just assumed that this was just standard requirements being introduced across all regions.