The purpose of mission automobile insurance is to insure employees' vehicles when they use them for business trips.
The policy is taken out by the company, both for itself and for its employees.
In the event of a claim, this insurance covers the company if its liability is incurred during the trips of its employees, as well as the latter for damage to their vehicle, without seeking their own insurer.
Why take out Auto Missions Insurance?
To face the possible recourse of the insured's automobile insurer
An accident caused by an employee using a personal vehicle for business needs is covered by their automobile liability insurer. This will pay for the damage caused to third-party victims, this is the very basis of the compulsory guarantee in automobile insurance.
On this occasion, the employee's automobile insurer will check the Special Conditions of the policy:
- If the declared use * of the vehicle applies to business travel, then you will be fine.
*Use clause insured vehicle. (ex: leisure use, professional use, business-commerce, all travel.)
- If the use of the vehicle is limited to private trips (eg: walking-commuting), even if business trips are only occasional, the insurer in the event of a claim will be entitled to apply a penalty. It results in the application of the proportional premium rule which applies to the insured or the latter's employer as principal.
The risk can be heavy for the company because of course, it is in serious circumstances, when the damage caused reaches several hundreds of thousands of euros that the car insurer of the employee is most inclined to exercise its recourse.
*** It is recalled that this risk is not covered by the fleet automobile insurance that the company has taken out, since the instrument of the damage is not a company vehicle, but a vehicle of a employee
Can General (or Business) Liability Insurance apply?
It should be remembered that this policy excludes damage that falls under compulsory automobile insurance or at least it covers them incidentally, the granting of the guarantee being generally uncertain.
Some business leaders believe they can avoid taking out motor vehicle police missions by prohibiting staff members from using their own vehicles for service purposes.
They forget that this "contractual" clause is not enforceable against third party victims. It only binds the employer and the employee in their social relations.
To avoid the application of a penalty for the employee
A responsible claim results in the application of a penalty: the employee's premium will therefore be increased.Since the incident took place during a business trip, and therefore useful for the company, will the employee not be tempted to request compensation from the latter?If the legal action against the employer is unfounded, is it genuinely and easily questionable socially?
Subscribing to the missions automobile policy avoids these problems since the claim is not reported to the employee's personal automobile insurer.Under these conditions, therefore, there can be no application of penalties, which is a welcome advantage.
To guarantee in all circumstances damage to the employee's vehicle
There are two scenarios:
- Liability for damage lies with a third party: it is the third party's motor vehicle liability insurer who will cover the damage.
- Responsibility for damage lies with the employee:
- Either the employee is insured "all risks": he will then be guaranteed but the insurer will apply the proportional premium rule plus a penalty on the next premium.
- Either the employee is not insured "all risks": in this case, his vehicle will not be compensated.
In both cases, the employee's appeal against the company is not legally founded. But as with the application of the penalty, social considerations must be taken into account. Once again, taking out a motor vehicle policy with an "All Risks" guarantee avoids these difficulties between employer and employees.
What does this insurance guarantee?
- DAMAGES CAUSED TO THIRD PARTIES
Motor insurance missions include at least civil liability coverage, the heaviest risk that weighs on the employer in his capacity as principal.
- DAMAGE TO THE EMPLOYEE'S VEHICLE
These are the usual guarantees such as: vehicle fire, theft, broken windows, damage following a collision or any accidents. These different guarantees are usually taken out as a whole.
Vehicle damage coverage is usually granted with a deductible. In this case, the portion of the loss corresponding to the deductible is generally borne by the company.
- OTHER RISKS
Auto missions insurance includes optional guarantees including:
- the driver's personal guarantee (Individual Driver's Accident)
- Assistance guarantee
What is the cost of this insurance?
The contribution depends on:
- the nature of the guarantees taken out: "third party" insurance (Civil Liability) or "All Risks" insurance (All Accidental Damage)
- of the annual overall mileage carried out by employees when traveling for the company.
- of the loss experience observed over the last 3 or 4 years
The contribution can be fixed but it can also include a rate applied to the annual mileage.