Hired/Non-owned Auto Liability
Are your employees driving their own personal vehicles for business? If the answer is yes, here is a friendly reminder: It’s a common assumption that the business’s auto policy will cover that vehicle in case of an accident. However, because this is a personal vehicle and is not owned by the business, this is not the case. A personal policy will be used as the primary insurance and the business auto policy will be the secondary insurance. This means the personal policy will take care of damage to the vehicle itself yet, if your employee is at fault, both the driver and the business can be separately sued. Having this policy will allow these types of lawsuits to be handled on behalf of your business.
Here are some scenarios that highlight how hired/non-owned auto liability coverage can protect your business:
Hired auto: Refers to any vehicle rented, leased, hired, or borrowed and used while doing business.
Example: If you were to rent a vehicle for a business trip and unfortunately cause an accident, hired auto insurance can help cover the costs if a lawsuit was to be filed against your business due to the accident.