Many business owners assume that if an employee uses their personal vehicle, any accident will be covered solely by the employee’s personal auto insurance. Unfortunately, that is not always the case. If an employee is running a business errand, making a bank deposit, picking up supplies, or visiting a customer on behalf of the company, the business itself can be named in a lawsuit following an accident.
This exposure exists even if the company does not own a single vehicle. Attorneys often look for all potentially responsible parties after a serious accident, and businesses can become targets because they may have greater financial resources than the individual driver. In some cases, the employee’s personal auto limits may be insufficient to cover the damages, leaving the business exposed.
Hired and Non-Owned Auto Liability coverage helps protect businesses from these situations. Non-owned auto coverage applies when employees use their personal vehicles for business purposes. Hired auto coverage can provide protection when vehicles are rented, leased, or borrowed for company operations. Together, these coverages fill an important gap that many business owners don’t realize exists.
One of the best features of Hired and Non-Owned Auto coverage is its affordability. For most businesses, the cost is relatively low compared to the protection it provides. If your employees ever drive their own vehicles on company business, this coverage deserves a place in your insurance program.
Stay Tuned For Other Great Reads In This Month’s Newsletter
- Umbrella Liability: Extra Protection for Growing Contractors
- Is Your Commercial Property Properly Protected?
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