Don’t Put Your Business at Risk: Ensure All Employees Are Properly Listed and Eligible as Drivers
The Issue
Many businesses overlook adding employees to their commercial auto policy. If an employee isn’t listed, insurers may not recognize their driving history. This can lead to coverage gaps, higher costs, and unnecessary complications.
Another common issue is failing to confirm whether employees meet the insurer’s eligibility requirements before adding them as drivers. If a driver doesn’t meet these requirements, claims may be denied—leaving your business exposed.
Best Practices for Businesses
- Keep an Updated Driver List – Maintain a current list of all employees who drive company vehicles. Provide your broker with full details so drivers are properly recorded.
- Clarify Regular vs. Occasional Drivers – Employees who drive regularly should always be listed on your policy. Occasional or one-off drivers may be covered under “permissive use,” but regular drivers must be declared to avoid potential coverage issues.
- Check Driver Eligibility – Before adding a driver, confirm they meet your insurer’s eligibility requirements. Adding ineligible drivers may lead to claim denials.
- Notify Your Broker of Changes Promptly – Whenever a new employee is hired to drive, or an existing employee’s role changes, inform your broker right away so your coverage stays accurate.
- Review Annually – At renewal, review your driver list with your broker to ensure nothing has been overlooked.
Why It Matters
- Lost Driving Record – Employees not listed don’t build an official history, which can increase premiums later.
- Coverage Denials – Claims may be delayed or denied if the driver isn’t listed or doesn’t meet eligibility criteria.
- Financial Impact – Businesses risk unexpected costs, downtime, and liability exposure.
The Benefit
By keeping your driver list current and confirming eligibility, you:
- Reduce the risk of coverage disputes or denied claims
- Protect your employees and your business
- Avoid unexpected costs, delays, and frustrations
- Maintain control of your insurance program with confidence
Need Help?
Not sure if your employee drivers are properly listed and eligible?
Contact us today for a quick review of your policy.