What is the position regarding insurance for a car used to transport employees for work purposes?

My employer has asked me to take 3 other members of staff in my car to go flyering for the company during our working hours. Will this effect my insurance? If so how? Is it my responsibility or the companies? What if the company is asking me to do it knowing full well that I don't have the relevant cover? I would not be claiming ANY expenses/mileage/money from the company - more fool me!!

Public Comments

1. you need busness insurance
2. Yes it will affect your insurance. If you don't tell your insurance co. they will not pay out if you have an accident. If you do tell them they will charge you extra.
3. if it is your own vehicle in your name and insurance then you must inform the insurance co that you intend to use it for business/hire or reward,if you do not then you are effectively not insured.it will push up your premium if you do.
4. Tell your employer you can't do that without the appropriate commercial insurance in place. Yes, if you are using your car to transport others for your employer while on the clock, you need commercial insurance.
5. I'm assuming you are in the U.K.? If so then your current insurance would be invalid as it would be insured as a private vehicle, for personal / pleasure use. If you intend to do what your boss is asking on a regular basis, you will need to change your policy to "business use". Ask your boss to make up the difference in cost. Insurance companies are notorious for being pedantic, and if you were to have an accident and a passenger was injured, it's guaranteed they would not pay out if they discovered you were using your vehicle for purposes other than specified. Take it from one who has "been there"......change your policy
6. So long as you only claim expenses NOT money to make a profit you do not need to expand your insurance. You are not doing it for 'hire or reward'. The persons travelling with you could claim on the Company for any damages as they were travelling on Company business. RoyS.
7. Personal auto insurance is intended to cover private passenger autos owned by an individual, and / or a husband and wife. Business auto insurance is intended to cover vehicles owned by business entities or personal vehicles that are used by employees for business use. Business auto insurance covers a wider variety of vehicles such as private passenger autos, trucks, and many other types! So you would need to tell your employer that they will either pay for the correct insurance for you or you will not do this. Yes doing this on your policy will effect you and your rates as well as if someone were hurt in an accident.
8. You will need to ensure that you have 'Class I' - business use by the policyholder on your policy. If there were an element of profit in the trip then your insurance would not cover you - but as you say you are not even getting mileage there should be no further problems.