WEDNESDAY, FEBRUARY 26, 2020
No one wants to think of an employee stealing from them, but it’s unfortunate risk that all businessowners have to consider. Even with the most strict background checks, the unexpected can happen. If an employee does decide to steal a work vehicle, that vehicle should be covered as long as you have the right insurance.
Commercial auto insurance comes with a lot of different facets of coverage. The main type of coverage is liability, which is required by most states. Liability covers bodily injury and property damage that you may cause someone else.
It is the optional coverages, however, that can prove invaluable to your company. Employee theft won’t be covered by basic liability coverage. Just like with personal auto insurance, theft is covered under comprehensive coverage. Comprehensive coverage provides compensation to your business in case a work vehicle is lost or damaged to fire, hail, wind, theft and vandalism. Thankfully, theft under comprehensive coverage does cover employee theft.
There are a few reasons an employee might steal the vehicle. Some disgruntled employees may hold the vehicle “hostage” and refuse to return it until their demands are met. Other employees may simply not have another mode of transportation, so they refuse to return the vehicle. In a few cases, especially with ex-employees who believe themselves to be wrongfully fired, the employee may steal the company vehicle simply out of anger or spite. Whatever the case, it’s important to notify police if an employee refuses to turn a work vehicle. If the employee causes damage to the vehicle either on purpose or on accident, the damages should be covered under your commercial auto insurance’s comprehensive coverage.
You can hope that your company will never have to deal with this, but it’s best to be prepared no matter the case.
Other optional coverage available under commercial auto insurance includes:
- Collision Coverage: Collision coverage provides compensation if the vehicle is damaged due to a collision with another vehicle or object.
- Uninsured/Underinsured Motorist: This coverage provides compensation if the driver crashes with a motorist who isn’t carrying auto insurance.
- Medical Payments Coverage: Medical payments coverage provides compensation for medical bills for the driver and their passengers no matter who caused the accident.
- Hired and Non-Owned Coverage: This provides coverage for vehicles hired, leased or borrowed by the company in case they are damaged in an accident.
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