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Commercial motor insurance

If you use motor vehicles for your business you are legally obliged to have motor insurance.

If your employees drive company vehicles it is your responsibility to purchase motor insurance for your entire fleet.

If your employees are using their own private vehicles for work purposes you are not obliged to pay for their motor insurance, but you are required to ensure that they have the minimum cover required by law. Your employees should disclose the fact that they are using their personal vehicles for work purposes to their motor insurance provider.

There are three main types of motor insurance:

  • third party
    the minimum cover required by law. Covers you against costs that arise as a result of injuries to other people and damage to their vehicle
  • third party fire and theft
    covers everything basic third party polices cover with added protection against your vehicle being stolen or destroyed in a fire
  • comprehensive
    the highest level of cover available. Protects against:    
    • injuries to other people and damage to their vehicle
    • your vehicle being stolen or destroyed in a fire      
    • medical expenses and accidental damage        
    • the cost of replacing your vehicle's contents 

Specialist motor insurance policies are available if motor vehicles form a core part of your business, for example if you run a taxi company or a courier service. 

Speak to your insurer or contact a specialist broker through the British Insurance Brokers’ Association (BIBA) to find the most appropriate policy for your business.