Having access to a company vehicle can be a privilege, but it is important to understand how company car insurance works in the event of a crash. In most cases, employees are protected from having to personally pay for damages. However, the accident may not be covered if an employee acted recklessly, or was not using it for a business-related purpose.
Almost every state, including Nevada, requires that businesses carry commercial auto insurance. If they have vehicles titled to the company that are used for business activities, such as:
Nevada requires a minimum coverage of $20,000 property damage liability per accident, $25,000 bodily injury liability per person, and $50,000 bodily injury liability per accident.
If a business’s employees regularly use their personal vehicles for company purposes, they may carry a type of coverage called, “hired and non-owned auto insurance.” As it covers employees who use their own cars to run work errands or rent cars for business trips.
A commercial vehicle policy is similar to a standard personal auto policy; only the coverage limits are typically much higher. If you have questions on company auto policies after an accident, consider speaking with a Las Vegas workplace accident attorney during a free consultation.
As with any vehicle insurance, company car insurance will have exceptions to coverage, meaning the policy won’t pay under certain conditions. For instance, an accident may not be covered if the employee is acting outside the scope of their employment. Outside the scope of employment means a company vehicle is being driven for non-work-related purposes. For example:
Company car insurance will also not cover an employee who causes a car accident due to:
Personal car insurance policies typically exclude many vehicle types and business uses. To avoid a gap in coverage, employees who use a company car must read their private insurance policy carefully. Additional coverage, called Extended Non-Owned Coverage can be purchased to make sure that an accident will be covered under any circumstance.
If you have been in a collision with a company vehicle, speak to a Las Vegas car accident attorney. We will carefully investigate your crash, and help ensure that liability is correctly assigned. Call or message us online to schedule a free consultation today.
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