BAP: Who Should You Be Listing as a Driver?

A frequent question received by the staff at the Big "I" Virtual University centers around the business auto policy (BAP) and its listed drivers. Here is a common example that recently came up and the responses from the faculty:

Q: If an office employee occasionally drives a company vehicle to deliver mail or documents, do they need to be listed as a driver on the business auto policy? Given that most auto policies allow permitted drivers, how do you decide which employees need to be explicitly listed?

Response 1: Listing drivers on a policy is more an underwriting and rating issue than a coverage issue. Knowing who will be driving enables the underwriter to obtain and review each individual driver’s motor vehicle records and loss histories. That process also has a positive effect on the agency's loss ratio. Being as forthcoming as possible about potential drivers is always the best course of action.

Response 2:
The policy allows anyone to drive with the permission of the named insured. The insurer wants information on anyone who drives, or may drive, one of the company’s autos on any regular basis. The office employee who only drives once in a while may have a terrible driving record. It only takes a single crash to cause a large loss.

Response 3:
The carrier has a right to know who is driving, even occasionally.

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