Do you ever pick up guests at the airport, maybe take them on the occasional tour or drop them off at various places, maybe just a harmless lift now and again?
One can even argue that if the cost of your car insurance is paid for from the business, it is indeed a company vehicle and therefore by association used for commercial purposes.
Normal car insurance does not cover many events – it is designed for you and your family and not for any commercial reasons.
In the event of claim where the car is carrying passengers, and is of a commercial nature there is every chance the insurance company could refute the claim due to non-disclosure by the insured.
Resulting in the insured’s policy being invalid and all costs paid out of the insured’s own finances.
If you have concerns about whether your guest house insurance cover is adequate, Incompass would be delighted to discuss your insurance needs and provide you with a free quotation based upon your specific circumstances.
What is car insurance?
Car insurance covers theft of and damage to your car or damage that your car causes, plus liability protection in case you are sued as a result of an accident.
As a car owner, you pay premiums set by the insurance company based on the value of your car and the risk the company believes you pose. The insurance company agrees to cover your losses, subject to an excess and the limits specified in the contract.