Finance Blog

Road Warrior Tips: How to Handle an Accident When Traveling on Business

Written by Linda Rey on November 4, 2010 in Insurance  |   No comments

Road Warrior Tips: How to Handle an Accident When Traveling on Business Crash! What happens if you get into an accident while traveling on business? Who pays if you get into an accident during a business trip? Will your auto insurance policy take the hit…

Business trip accident checklist- what to doRoad Warrior Tips: How to Handle an Accident When Traveling on Business

Crash! What happens if you get into an accident while traveling on business? Who pays if you get into an accident during a business trip? Will your auto insurance policy take the hit or will your company’s insurance policy cover the damage?

If your work takes you on the road or up in the air (though probably not with George Clooney), you might be overlooking important questions about your insurance coverage.

Accidents are considered either at fault or not at fault. It doesn’t matter if you’re working or playing, the cause of the accident and wherein the fault lies is what determines which insurance policy should respond. It’s critical to call the police in the event of an accident so sworn statements can be made which will be reviewed by the insurance company. Taking photos of the damage to your vehicle will also help prove your claim.

(For more information on how to respond after an an accident, read my post: What To Do In Case Of An Accident.)

How Employees Should Handle an Accident While Traveling for Business

However, in the case of a work-related accident, the type of auto insurance policy you have could affect the way you file your claim. If your travel consists of driving your own car to the airport, you most likely have a personal policy, but if your job relies on using company transportation, you’re probably looking at a commercial policy.

Some businesses are required to register vehicles as commercial with the Department of Motor Vehicles and some businesses choose to register private passenger vehicles as commercial. If you’re driving a company car, make sure you know how that vehicle is registered.

If you get into an accident while traveling for business, you will follow the same steps as you would if you were in an accident outside of work, but your employer will most likely file the claim. Check with your boss or HR department to find out the exact procedure for filing a claim.
After obtaining a police report, you can submit it to your employer and they can file the claim with the insurance company. The insurance company will then respond to the policy holder to decipher damages and injuries.

Rental cars are a common area of concern with business travel. Pay attention to how you are listed on the rental agreement. This will be especially important if you get into an accident and you or your employer are responsible for any damages. If you are renting a car personally while on vacation, take at look at my previous post on Rental Car Insurance for some extra insight.

How Business Owners Can Prepare For An Accident

Start by consulting with your insurance agent to determine whether or not your vehicles need to be registered as commercial.

As a business owner, the smart (and sometimes required) move is to carry a Business Owner Policy also known as a “BOP”. This policy includes liability for personal injury and property coverage for the contents that enable you to run the business. With this policy, you can add or endorse the policy to include a coverage part known as Hired & Non-Owned Auto. This provides liability coverage only to protect the business in the event you rent a car for business. It does not protect against physical damage coverage. In addition, this coverage does not include injuries to the employee or third party.

If your employee suffers serious injuries while in a rented vehicle during company business and their personal auto insurance is not sufficient, your company could be held responsible. Such claims could be catastrophic and yet, the cost of this endorsement could be less than $200 per year.

Think about it – your business could be wiped out if you get into an accident and don’t have the right coverage. That’s why I strongly recommend that business owners discuss business operations, employees, and how you use of vehicles to operate your business. It could save confusion and a lot of money if an accident occurs.

Drive Safe!

Linda Rey is a licensed insurance agent at Rey Insurance with a broad spectrum of expertise in life, accident, health, property and casualty insurance as well as retirement planning and college funding strategies.

Follow Linda on Twitter.


Summer Toys: Insuring Your Pool, Trampoline, or Boat
Business Insurance Can Help Your Business Grow
Workers’ Compensation Won’t Work For You
FAQs About Disability Insurance

No comments yet

Leave a Comment

Name :

Commenting guidelines

We welcome your interest and participation on this forum, but be aware that comments will be published at Equifax's sole discretion. Please don't use this blog to submit questions or concerns about your Equifax credit report or raise customer service issues. Instead, you should contact Equifax directly for all such matters and any attempts to do so in this forum will be promptly re-directed.

Some other factors to consider when commenting:
  1. Registration and privacy. While no registration is required to visit our forum, participants wishing to post a message must register by creating an account. All personal information provided by forum members incident to registration is governed by our Terms of Use and Privacy Policy.
  2. All comments are anonymous. We'll delete your name, e-mail address, and any other identifying information, including details about your investments.
  3. We can't post or respond to every comment - As much as we'd like to, we can't post every comment, nor can we guarantee that we will respond to each individual message. All questions or comments about your Equifax credit report or similar customer service issues should be handled by contacting Equifax directly.
  4. Don't offer specific legal, tax or financial advice. All of the materials on this Site are for information, education, and noncommercial purposes only and this forum is not intended as a means of expressing views or ideas regarding any specific legal, tax, or investment advice. While offering general rules of thumb is both permitted and encouraged, recommending specific ideas or strategies regarding investments, taxes, and related matters is prohibited.
  5. Credit Repair. This blog is not intended as a venue for the discussion or exchange of ideas regarding credit repair or other strategies intended to assist visitors and community members improve or otherwise modify their credit histories, ratings or scores.
  6. Stay on topic. Your comment should be concise and pertain to the specific post in question.
  7. Be respectful of the community. The use of profanity, offensive language, spam, and personal attacks will not be tolerated and egregious or repeat offenders will be banned from future participation. We encourage disagreement and healthy debate, but please refrain from personal attacks on our WordPresss and contributors.
  8. Finally: Participation in this forum may be terminated by Equifax immediately and without notice for failure to comply with any guidelines or Terms of Use. As such, you should familiarize yourself with all pertinent requirements prior to submitting any response through the blog or otherwise. All opinions expressed in this forum are solely those of the individual submitting the comment, and don't necessarily represent the views of Equifax or its management.

Equifax maintains this interactive forum for education and information purposes in order to allow individuals to share their relevant knowledge and opinions with other members and visitors. We encourage you to participate in discussions about personal finance issues and other topics of interest to this community, but please read our commenting guidelines first. Equifax reserves the right to monitor postings to the forum and comments will be published at our discretion. Do you have questions or comments about your Equifax credit report or customer-service issues regarding an Equifax product? If so, please contact Equifax directly. All opinions and information expressed or shared in blog comments are solely those of the person submitting the comments, and don't necessarily represent the views of Equifax or its management.

Insurance Archive

Stay Informed Sign up for our FREE Equifax email Newsletter