Do Employee Driving Records Affect Commercial Auto Insurance?

When you purchase a commercial auto insurance policy for your business, you will give a lot of thought to employees who will be using it. There is more to consider than an employee’s experience and personality, however. Their driving record can heavily influence your commercial auto insurance. 

Exclusions and Limitations for Commercial Auto Insurance 

In many cases, insurers will have certain exclusions for commercial auto insurance. An insurer may not allow you to add certain employees to your commercial auto insurance policy due to their driving record. Drivers with poor records are seen as a higher risk for causing an accident or filing a claim, so insurer may require that certain employees are not allowed to operate the commercial vehicles. If excluded drivers are given permission to operate these vehicles, they will not be covered after an accident. 

Employee Driving Records and Insurance Costs 

If employees are approved to operate your business’ vehicles, their driving record can still influence your business’ commercial auto insurance rates. Drivers with poor driving record can result in you paying higher premiums for commercial auto insurance.  

This also applies if an employee is involved in a wreck in one of your business’ commercial vehicles. If an employee causes a wreck in one of your commercial vehicles, filing a claim can raise your rates. This doesn’t mean the employee is completely off of the hook, however. Even if they are in your business vehicle, a driver still operates under their own driver’s license. The driver may then suffer higher premiums on their personal auto insurance policy, as well, depending on the situation and severity of the accident. 

This is why it is important to conduct extensive background checks on all drivers. While it is impossible to avoid every accident, drivers with a history of accidents may be higher risk to have on your commercial auto insurance policy. 

Who is Covered Under Commercial Auto Insurance? 

For most commercial auto insurance policies, anyone who is given permission to operate the vehicle will be covered with the exception of excluded drivers. In some cases, you may choose to put specific employees on specific vehicles, such as if your business offers company cars. Keep in mind that you should review your commercial auto insurance policy any time your business’ needs change. If you have more drivers operating vehicles, you may need higher limits of commercial auto insurance.