Why Should Companies Consider Automotive Insurance?

Zak Goldberg  |

Nowadays, there are many companies which need their employees use cars in order to operate effectively. Certain employees may, for instance, need to drive between offices/work sites on a daily basis. What many people do not realize is that regular car insurance only covers cars for domestic and social use, and so is fairly limited when driving for work purposes. Here are some of the reasons that business automotive insurance, which is provided by specialist firms like Gallagher, should be a consideration.

It May Be a Legal Requirement

Those employees that only use their cars for commuting purposes will usually be covered by regular insurance, but for most other work related purposes the car will not be covered by the same insurance. This means that those companies which do not have business automotive insurance for their employees may well be breaking the law by allowing employees to drive.

Business automotive insurance can protect both vehicles and employees, and can ensure that companies are operating within the law. This affords them peace of mind, and may well save them from fines and or prosecution further down the line.

Different Levels

One of the main selling points of automotive insurance for companies is that it has different levels of cover, usually ranging from class 1 to class 3. This means that businesses of all shapes and sizes can choose cover which is the right price and level for them, and upgrade or downgrade as and when suits them.

Level 1 is the most basic level of cover, and it usually only covers driving between work sites/offices. At the other end of the spectrum, level 3 covers extensive travel for work purposes, and is usually necessary for those companies which rely on cars as a crucial part of their operations.


By taking out automotive insurance, companies may also be able to enjoy new opportunities by being able to use cars more extensively. They may, for instance, be able to reach clients with greater ease, given that their employees will be able to use their cars for almost any journey during working hours.

With proper insurance for business purposes, companies may also be able to provide a car for those employees without their own, further enhancing their capabilities.

So, these are the main reasons for companies to take out automotive cover. It is wise to get quotes from a number of different insurance companies in order to get the best deal possible.

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