Coverage for Employees Using Personal Vehicles for Work

non owned auto insurance

Depending on the type of business, you’re operating your company might have potential automobile loss exposures that you may not be aware of. This is certainly true of staffing and temporary staffing agencies. Operating in this industry practice requires that you take all of the necessary steps to ensure that your business is properly covered in the event of an accident.

This is due to potential losses that may arise from individual employees who operate their own personal vehicles for company business. There are certain situations that present a potential for disaster and for which you could be held accountable for the actions of your employees while they are driving their own vehicles. Hence, non owned auto insurance should be in your portfolio of policies.

Situations where coverage is required

Issues could stem from administrative employees using their own vehicles to go to the post office or bank on your company’s behalf. In addition, if you send an employee to pick up a visiting client at the airport, pick up lunch, drop off mail, or pick up office supplies and they’re involved in a wreck the company could be held responsible.

If you have ever rented a vehicle while on a business trip, or you have a sales force to which you provide a car allowance for business use of their personal vehicles, then having coverage is the best way to protect the business. In summary, if an employee has an accident under any of these situations, your business can be held accountable and sued for damages.

Having basic business automobile policies will only cover employees while they operate company-owned vehicles to perform company business. This is perhaps the best argument for purchasing non-owned and hired automobile liability coverage. This type of coverage will aid you under most circumstances.

Typically, an employee’s personal automobile insurance will provide primary insurance to both the employee and the business if the employee is using their own vehicle on company business. However, you must consider the possibility that charges will exceed the employee’s policy limit and would then be passed on to the company. Without an owned auto insurance liability coverage in place, you may be vulnerable to a potentially costly exposure.