Commercial Auto Insurance: What to Do with a New Hire?

What Happens if I Forget to Add a New Hire?

You may face several serious consequences if you forget to add a new hire to your commercial auto insurance policy. Your insurance company may deny the claim if the new hire is involved in an accident while driving a company vehicle. Your company could be held financially responsible for damage or injuries resulting from the accident, which can be a substantial burden.

Additionally, failing to add a new hire can lead to legal issues, as operating a commercial vehicle without proper insurance coverage is against the law in most jurisdictions. This can result in fines and penalties.

Not adding a new hire to your policy can impact your insurance premiums in the long run. Insurance companies assess risk based on the drivers listed on your policy. Suppose an unlisted driver is involved in an accident. In that case, it can signal to the insurer that your company is not managing its risk effectively, potentially leading to higher premiums when your policy is up for renewal.

How to Add a New Hire to Your Policy

Contact your insurance agent when you hire a new driver, even if they aren’t starting for several weeks. Provide them with all necessary information about the new hire, including their full name, driver’s license number and driving history.

Your agent can also help review your policy’s terms and conditions so you understand any specific requirements or procedures for adding new drivers. Some policies may have provisions for temporary coverage for new hires, while others may require immediate notification. Following the correct procedures will help you avoid any gaps in coverage and ensure your new hire is fully protected while driving a company vehicle.

Learn More

Contact Insurance Solutions to explore commercial auto insurance options near you.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.