Apologies in advance for the long detailed question. I work for a company that provides care to people with developmental disabilities. Since I have worked there, an employee
can either be a "driver" (use their personal car to transport clients around to various functions) or not. However, the pressure to be a driver is increasing if one wishes to be able to get significant shifts. They do have a requirement that you have certain minimum coverages, a clean driving
record and that the car be insured "for business use." HOWEVER, I have found out that it is essentially a universal policy
that, even with business/commercial insurance
, if you are providing compensated taxi-like service (which this is considered to be), it falls outside of what is covered and any claim made will be denied and it is likely your insurance policy will be summarily canceled. I found this out when I first started working for the company and my agent informed me of this after they found out the work involved transport of people (the one allowable exception being if you go through the training to get a Class C license.) I checked with other insurance companies and found that every one I contacted had essentially the same rule. Apparently, the company is counting on most insurance agents not asking what the nature of the business is since, when I told them about my discovery, their only response was "They asked you what you were doing for work?" A friend who was a driver, when his insurance company did find out the nature of the work, immediately cancelled his policy since they claimed it was insurance fraud. When he approached the company about the problem, he was told that he was "supposed to lie and say that driving the client was an extremely rare occurrence." Some of my research has suggested that even if it WERE a rare event that any claim could legitimately be denied as it fell outside of the allowed business usage. My concern is that the company is knowingly pushing their employees to unknowingly commit insurance fraud. Is this the case and what is the correct course of action? I have some confusion on this since real estate agents, insurance adjusters etc. who are required to provide periodic transport of people for work can still be insured for this activity with no problem.