What is your liability in a situation involving an employee who is driving their own car to run a business errand and they have an accident? Usually, the employee’s personal auto insurance will cover damages, however, you are still liable for anything beyond their policy limit. This is why you need, hired non-owned auto insurance.
Company Automobile Policy
This is a different insurance than your business automobile policy, which covers damages and injuries only when an employee is driving a company-owned car. Here are some everyday situations that are not covered by a typical company auto policy:
- Employees running business errands such as making a bank deposit or picking up office supplies.
- Employees attending conferences or sales meetings in another location who use rental cars to get around town.
- Employees such as sales people who are reimbursed by your company for driving their personal vehicles to and from meetings.
- Employees sent to pick up a client at the airport.
Protect Your Business
Your company may be sued for damages should one of your workers have an accident in these situations. Hired non owned auto liability insurance protects your business by covering claims for damage and bodily injuries that occur while an employee is driving a rental car or their own car on company business.