Do you drop of cake creations or other products to customers using your car? Do you drive to and from business meetings with your family car? And all with your standard car insurance policy?
By law, if you use a vehicle for work, you need to take out the right insurance cover. Even if you use your own car, a private policy is will not provide sufficient cover if the worst should happen. And even worse, not having the right cover may even be invalidated if you use your vehicle for business purposes.
Employees – if you employ staff who use their car for your business then they must also hold the right insurance cover.
Different levels of insurance
Having car insurance for business purposes is a little more expensive than the domestic insurance because there is a lot more risk involved, but if you shop around and compare car insurance quotes, you will get a better deal.
Here is abreakdown of the types of car insurance policies that are available:
* Class one policy – covers your car for work and personal use.
* Class two policy – covers other drivers who use your car for business purposes.
* Class three policy – for commercial travelling, ie if you drive from meeting to meeting making sales visits.
* Commercial vehicle insurance – covers a vehicle that carries goods or people specifically for business.
* Fleet insurance – is generally available for a minimum of five vehicles (can be a mixture of cars, light goods vehicles and heavy goods vehicles).
If you employ people who drive as part of your business, you need to check the licences of all your drivers. You must advise your insurers of any serious motor convictions or your insurance will be invalid.