Car Leasing Expert, Graham Hill, Explains OBU Insurance

Saturday, 13. March 2010

There has been an increase in the number of employees who have either opted for cash for cars or been expected to use their own cars for business in exchange for a cash payment. Either way there is a responsibility on the employer to ensure that the vehicle is roadworthy and properly maintained as well as properly insured for business use. There is a grey area for employers who, in the event of an accident, in which an employee is involved whilst on business, could end up being sued. In order to cover this exposure and ensure that employees are properly covered for business use employers can now take out an Occasional Business Use (OBU) Insurance policy. This covers any corporate liability arising from private car drivers being involved in an at work accident. OBU is useful if the third party pursues a claim against both driver and employer, especially if problems surface with the driver’s own insurance. Many insurers provide an OBU policy including Axa Insurance. If you are an employer and have employees driving their own cars on company business it would be very wise to consider OBU insurance. By Graham Hill