Indemnity of motor insurance

Utter Consternation

I have to use my car for work and my employer wants me to indemnify my insurance.

Why do i have to do this?? What would happen if i didnt??

bladespin

Do you mean commercial use insurance? You would need that if your car is used for business purposes.

peteb2

Your employer wants an indemnity to them should something happen and whoever you injure attempts to sue them as you were on company business. Could have a problem if you went for a cheap online policy that only gave you social domestic and pleasure use.

In some businesses if you can't show a cert with a specific indemnity they won't pay your mileage claim.

coylemj

Utter Consternation wrote: »

Why do i have to do this?? What would happen if i didnt??

That is a legal question which relates to the terms and conditions of your employment.

If you ask your insurer for 'restricted business use' with indemnity for your employer, they will usually give it to you. I had no problem with Axa and they didn't charge me for it.

You need to tell your insurer (if all of these apply) that your use of the car while on business (1) is for occasional use only i.e. you're not on the road 3 or 4 days a week (2) is not connected with sales and (3) you will not be carrying goods and samples. If you can tick all of those boxes, you shouldn't have a problem.

This is sometimes called Class II insurance but that can mean different things, depending on who you're talking to so to be 100% certain, I would ask for 'restricted business use'. They will give you a new cert which includes the usage category 'use by the insured in the course of his employment, as last advised to the company'.