What Is Broad Form Insurance? Learn About It For Protecting Your Employees

A car cover which provides financial protection to employees or executives of an organization, who don’t own cars but drive company vehicles, is known as broad form insurance coverage. A policy of this type requires companies to furnish names of individuals and their spouses that will be driving company cars.

All broad form policies meet legal requirements mandated by each state with regards to minimum liability coverage for third party bodily injuries and property damages. Hence, if you are an employee who is going to drive a company car, you will be protected from expenses caused by a probable accident.

However, drivers are not entitled to get protection for cars if they are damaged in accidents as there are no comprehensive and collision coverage features in such policies. But you do have the option to buy personal injury protection and uninsured motorist coverage features separately.

Besides, it is possible to add an SR-22 filing alternative to broad form named operator policies so that drivers can carry proof for having valid auto insurance post DUI or DWI conviction. Learn more about broad form insurance by talking to an expert today! To fix free appointment, apply now!

Certain state restrictions apply to broad form auto insurance policies and that gives way to some kind of limitations in coverage. Nevertheless, companies still prefer to buy broad form car covers as it is a cheaper option to get their employees covered on road. Here are few reasons which might prompt you to get such type of company car cover:

• You intend to ensure that your employees must at least have minimum liability coverage without requiring them to spend money.

• Your employees drive company cars, whether frequently or occasionally, but they don’t use their personal vehicles for business related work.

• Your employees are likely to drive company owned cars with or without passengers and there is always a chance of their meeting with accidents.

• Your employees are insured to drive personal cars under standard policies but they are also likely to drive company owned cars which need additional insurance coverage.

Typically, broad form company car insurance for employees are cheaper than standard policies as the coverage levels provided could be low and inadequate. But it can be a very good option for drivers whose license has been suspended because of DUI or DWI conviction and looking to get it reinstated.