In considering the subject Delivery Drivers and Your Business: Insurance Insights You Need to Know Before an Accident Happens, it is necessary to examine the the situations insurance covers, and how business owners are protected from potentially crippling financial and legal liabilities. The standard by which liability is defined varies from state to state depending upon the specifics of the operative laws. Understanding these issues helps the business owner craft an insurance coverage plan suited to any particular business situation.
What Insurance Covers
Commercial vehicle insurance provides the same sort of coverage individual car owners enjoy. Policies are designed for any number and type of vehicles owned by the business as well as any employee using company vehicles.
These policies cover basic accident liability, property damage, comprehensive coverage for vehicle loss or damage, medical, collision, and coverage for uninsured motorists. Deductibles apply to certain areas of the coverage. There are also coverage options for employees who drive their own vehicles on company business.
How Liability Is Defined
In many states, liability is counted as a straight issue of which party is assigned the clear fault for the cause of accident. In other words, Driver A ends up bearing 100% of responsibility while Driver B is considered the victim.
Some states, such as Louisiana, operate under the principle of comparative negligence. Under this concept, fault is assigned to each party by degrees depending upon their contributory behavior to causing the accident. Both end up with a share of the blame for the accident in that circumstance.
Importance Of Covering Both Vehicles And Drivers
The reason for covering vehicles is obvious, given the potential for property damage and injury. Covering employees using their own vehicles for company business closes a hole in the insurance protection.
Acting on behalf of the company makes that company responsible for accident situations and the resulting injury and damage even if no company vehicle was used. Failure to provide said coverage opens the door to lawsuits, legal penalties, and personal liability beyond that faced by the business. Therefore it is essential to include all employees in the coverage plan regardless of whether they do not function as drivers or drive company-owned vehicles.