As a business owner or company director wanting to lease a car for yourself, you have the choice of either business contract or personal car leasing, and each option has its own implications, benefits and disadvantages, particularly in terms of insurance.
And if you are using your new car mostly for work (think sales calls and visiting job sites), and you bought the car in your name, that mistake can cost you as your business won’t be able to insure it properly.
Your personal auto policy will provide coverage for some business use of your vehicle. The same is true for your employees’ personal auto policies, which also cover some business use of their vehicles.
But, a personal auto policy is unlikely to provide coverage if the vehicle is used primarily in business.
The personal auto policy, whether yours or your employee’s, may not have high enough limits to protect your business.
For example, take the scenario: You are driving to a business meeting while having an intense conversation on your phone with your production department and you plow into a car in front of you, injuring the driver and three occupants. Then they sue you and your company.
If you have only a personal auto policy, your insurer will probably defend you personally and pay the claim up to the policy limit. Your personal auto policy insurer will not defend or pay damages on behalf of your business, however. Most certainly, once your policy limits are exhausted your business could be on the hook for the rest of the damages, but your firm’s insurance would likely not cover it.
If you or your employees are driving personal vehicles on business and relying on your personal auto policies, be sure you and they have sufficient liability coverage to protect your business in the event of a serious auto accident.
Do not expect to rely on a personal umbrella policy for any claims that arise from business use of a vehicle. Typically, the personal umbrella excludes all claims occurring in the course of a business endeavor.
If you are in the market for a new car that you’ll be using a significant amount of the time for work, you should seriously consider leasing it in your company name. It will save you from headaches later if you are involved in an accident.
BGES Group’s office, located in Larchmont, NY is a full service insurance agency offering, Property, Liability, Umbrella Liability, Business Auto, Bid & Performance Bonds, Inland Marine, Worker’s Compensation, New York State Disability, Group Health, Life insurance, Personal lines and Identity Theft.
BGES Group are Worker’s Compensation Specialists for the States of New York, New Jersey and Connecticut – Issues we address: 1) Lowering pricing – we have specialty programs that can save you up to 40%; 2) Finding a new company; 3) Being cancelled or non renewed; 4) Audit disputes; 5) Company creating fictitious payroll at audit time; 6) Lowering high experience modifications factors; 7) Misclassification of payrolls; 8) Lowering or eliminating renewal deposits; 9) Getting coverage when you’ve been without for a few months; 10) Covering multiple states under one policy; 11) Eliminating 10% service or policy fees; 12) Timely issuance of certificates; 13) Always being able to get someone on the phone or by email when you need to.
Special Contractor Insurance Programs (NY, NJ, CT) – We we have 50+ insurance companies to market your general liability, umbrella liability, business auto, workers compensation, bid & performance bonds and group health coverages. We help contractors set up proper risk transfer mechanisms. If you’re a contractor we offer extensive information about insurance markets, coverages, risk transfer mechanisms, subcontractor screening, ways to lower your insurance costs that lower them.
Contractors Make More Sales – Close more sales with easy, affordable financing options for your customers. Everything can be done from your phone. Thirteen banks to get financing from. No hidden fees. Click here to learn more. P.S. FREE Email us for a FREE copy of The Contractor’s Handbook to Picking the Right Financing Option (ßClick Link and Request Copy)
Identity Theft – Over the past year hundreds of thousands of people have had to deal with identity theft. This has become such a huge problem so we now offer Identity Theft Protection. We heard stories of kids going for car loans and learning they owe $200,000+ to companies they never heard of. Under our program you can protect yourself, spouse and children. Anyone you know can purchase this protection though our plan! Click here to learn more or sign up.
Soon To Be The Best Artificial Intelligence Technology Marketing Platform In The World To Get You New Customers – Sick and tired of paying social media experts thousands of dollars to do your marketing? Paying Google, Facebook, Linkedin hundreds/thousands of dollars for lousy results? How would you like to dominate your business niche? How would you like get in on the ground floor and earn a massive new cash flow every month? Click here to learn more.
Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538
© – Copyright – 2020 – BGES Group