Can an employer dictate the amount of insurance its employees hold on their personal vehicles if they are used for work as delivery drivers?

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Can an employer dictate the amount of insurance its employees hold on their personal vehicles if they are used for work as delivery drivers?

The employees are paid hourly and are not independent contractors.

Asked on May 18, 2012 under Employment Labor Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Yes, the employer may mandate the type and amount of insurance employees must have on any personal vehicles they use for work; may require that it be listed as an additional insured; and does not have to reimburse or pay for the cost of insurance. Companies may set the terms and conditions of employment, for both employees and independent contractors, and can make provision of certain insurance one of those terms or conditions.


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