In this third part of our series about insurance for start-ups, we look at how you can best insure your company car and those of your employees. After all, company cars are a serious financial investment and deserve the best protection.
A company car is a non-statutory benefit which you can claim for yourself as a self-employed person or provide for your employees. It is important that the company car is introduced for business purposes. This means that employers can require their employees to only use it during working hours.
It is not always enough to just insure the company car. Extra covers may be necessary for drivers, work equipment and carriage of goods (CMR). We’ll explain the main elements involved in insuring your company car properly.
Insurance of the actual company car comprises three elements: third-party liability, comprehensive insurance and legal assistance.
Third-party liability is the liability insurance for the car required by law. This means that, if your company is held liable for an accident involving a company car, the insurance compensates the passengers and third parties affected for the bodily injury and property damage suffered.
Comprehensive insurance on the other hand also compensates for the damage sustained by your own company car or your employee’s in case of an at-fault accident. Comprehensive insurance covers many other things apart from own damage. For instance vandalism, explosion, theft and fire.
Legal assistance insurance provides legal support in case of a loss or traffic offence. This is important for company vehicles because the company may be held liable in case of violations or at-fault accidents.
We therefore recommend that you protect your company car via comprehensive insurance combined with legal assistance, so you can save yourself from financial concerns if something goes wrong.
The major item lacking from both third-party and comprehensive insurance is cover of your own bodily injury in case of an accident where you’re at fault.
This means that if you’re injured and at fault, you have to pay the medical expenses not reimbursed by the health insurance fund yourself.
Driver insurance makes sure that these costs are covered.
Theft of equipment from company vehicles is one of the fastest growing types of theft in Belgium. The financial consequences of this are often quite great as well.
This could mean that you lose often expensive equipment and be unable to carry out work for your customers for several days. These factors could cost you lots of money as a self-employed person.
With ‘Own-account carriage of goods by road’ insurance, you can cover the financial loss you suffer due to theft.
You’ll find that comprehensive insurance often provides minimum coverage of theft. This is often disproportionate to your equipment in the vehicle. With Own-account carriage of goods by road insurance you specify the amount of the sum insured yourself at favourable rates.
Goods in transit insurance
If your business transports goods for customers, you are contractually liable for all damage occurring to the goods between receipt and delivery of the goods or for delayed delivery. This is based on the CMR convention (Convention on the Contract for the International Carriage of Goods by Road).
Carrier’s liability or CMR insurance covers the carrier’s liability based on the convention.
The convention not only protects goods, but also carriers. This means that the carrier can’t always be held liable. Exceptions apply, such as damage due to a defect in the goods caused by poor packaging, for example.
As a carrier, you should also bear in mind that not all goods are covered as standard by CMR insurance and that extensions can be taken out for the policy for items such as contamination, etc. That’s why it’s important that you always run through all the types of transport you carry out with your broker, so that there are no gaps in your policy and you can transport your goods with peace of mind.
Any questions about your fleet? Would you like an extension for your company cars? Fill out your details below and we’ll get in touch as soon as we can.
You can contact us straight away on +32 (0)3 217 67 53 or email firstname.lastname@example.org
Read Part 1 Insurance for start-ups here: liability policy
Read Part 2 Insurance for start-ups here: accident-at-work insurance