Companies often find themselves relying on employee assistance for things like office errands, carpooling for training events or traveling to sales meetings. The use of personal vehicles for business-related ventures brings new challenges and liabilities not covered by a traditional commercial auto policy. For coverage in these situations, it is wise to purchase a policy of hired and non-owned auto insurance.
Who Needs This Coverage?
Businesses often carry a commercial auto policy that offers protection for the following events:
- Auto liability damage to another party’s vehicle
- Medical expenses for injuries incurred by a crash
- Physical damage caused by vandalism, theft, storms or vehicle collisions
- Damage or medical coverage by uninsured motorists
This coverage only applies to business vehicles. Anytime an employee operates a vehicle not owned or associated with the business for business purposes is susceptible to increased liability. Having a hired and non-owned policy, as a stand-alone or add-on, can make sure you’re protected.
What Does It Protect?
A separate policy for hired and non-owned vehicles covers incidents involving rental vehicles or an employee’s personal vehicle when used during company business. This includes accidents or incidents involving rental cars, leased vehicles or chauffeur services.
Every business should take advantage of the protection hired and non-owned auto insurance provides against commercial liability related to employee vehicle use.