Many new businesses, such as Mobile IV Clinics or Mobile Spas don’t have automobiles that are owned by the company. The medical providers or business owners are using their personal cars to drive to a patient/client’s home or business to provide services. If you are one of these persons, you need to consider the following concerns:
- Insurance Coverage: Your personal car insurance policy may not cover accidents that occur while using your car for business purposes. Some insurance policies have exclusions or limitations for business use, and may not provide coverage for property damage, injuries, or liability resulting from a business-related accident. In some cases, you may need to purchase a separate commercial auto insurance policy to cover your business use of your personal car.
- Liability: If you are at fault for the accident, you may be held liable for damages to other people’s property or injuries they sustain. This can include damage to other cars, buildings, or other property, as well as medical expenses, lost wages, and pain and suffering. If you are driving for business purposes, your employer may also be held liable for damages, depending on the circumstances.
- Workers’ Compensation: If you are an employee and are using your personal car for business purposes, you may be eligible for workers’ compensation if you are injured in an accident. Workers’ compensation can provide benefits to cover medical expenses, lost wages, and other costs associated with a work-related injury. However, the specific eligibility requirements and benefits vary by state and by employer.
- Legal Action: If you are involved in an accident while using your personal car for business purposes, you may be subject to legal action. This could include lawsuits filed by other drivers, passengers, or pedestrians involved in the accident, as well as claims filed by your employer or their insurance company.
- To minimize the risk of legal and financial consequences, it’s important to understand the implications of using your personal car for business purposes, and to take steps to ensure you are adequately covered by insurance. This may include purchasing a commercial auto insurance policy, discussing coverage options with your personal insurance carrier, and following your employer’s policies and procedures for using personal vehicles for business purposes.