Non-Owned Car Liability Coverage

Imagine this scenario, you’re at the office swamped with calls, you’re trying to prepare a contract for an expected client and you find you run out of printer paper.  So you decide to  send your employee to the office supply store to pick up some printer paper so you can stay at the office and handle the more important matters. Your employee hops in their personal vehicle and heads off down the road. On the  way to the store, your employee rear ends the car in front of them. Not only was the other drivers vehicle damaged, the other driver was injured as well.

This is how it will play out. Since your employee was driving for work, their personal auto insurance can refuse to pay the bill. So then what? When the employee causes the accident, the injured party is going to look to your company to pay for damages since the employee was using the car on company time. if an employee of your company has a serious auto accident in their own vehicle or in a rented vehicle while on company business and their personal insurance is not enough to cover the claim, your company can be held responsible.  What can you do to prevent this from happening to you?

You can purchase something called non-owned car  liability coverage insurance. What exactly is this? Employers’ Non-Ownership insurance provides liability protection when an employee occasionally has to drive his or her personally owned vehicle for business purposes. This assumes that the vehicle is not owned, registered or contracted in your name or on your behalf. This type of  coverage protects your company should it be sued due to an auto accident while one of your employees is on company business in a personal vehicle.  This coverage  supplements the driver’s personal auto liability coverage. Coverage kicks in if there is an auto accident and you are sued.  The  policy protects your business, so your revenues wouldn’t be siphoned off by legal judgments.

If your employees even occasionally use their own cars for your business, you might want to consider contacting a qualified insurance agent. The agent will be able to sit down with you and help you figure out what coverage  will best protect you and your company so that you can avoid any financial loss if this were to happen to you.

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