Commercial or Business Auto Insurance can cover a combination of vehicle types (trucks, cars) and drivers, as well as some types of motorized equipment. It provides for bodily injury liability and property damage while operating a company automobile, medical payments or Personal Injury Protection (PIP) for the driver and passengers of the policyholder's car. Injuries or damage to someone else are also covered.
Hired/Non-owned Auto Liability
Are you renting cars or are your employees using their own vehicles? This particular coverage provides business insurance coverage for certain liabilities arising from the use of a rented or leased vehicle (hired), or a non-owned vehicle (employee using their own vehicle on company business). Oftentimes this coverage can be added inexpensively to a business auto policy, or in some cases, a general liability policy.
There are situations where you may be held liable for the actions of your employees, even if they are driving their own cars
- Do employees use their own car to go to the post office or bank on company business?
- Have you ever sent an employee to do an errand, like pick up lunch or office supplies?
- Have you ever sent an employee to pick up a client at the airport?
- Do you provide a car allowance to a sales person for business use of their own personal car?
- Do you rent vehicles while on a business trip?
Your business could be sued if your employee has an accident under any of these situations. Business Auto policies only cover employees while they are driving company-owned vehicles on company business. It is best to have hired/non-owned automobile liability coverage to protect you from any liability if there is an accident involving an employee in any of the above situations. It may not be wise to rely upon the employee's personal auto insurance to cover these accidents because the charges may exceed the employee's policy limits. Hired/Non-Owned automobile liability coverage insures your company against costly exposure.
This coverage is usually added to your Business Auto Policy, but it can also be added to your general liability policy if you do not have a Business Auto Policy.
Hired/Non-Owned Automobile Liability Insurance covers bodily injury and property damage caused by a vehicle you hire (including rented or borrowed vehicles) or caused by non-owned vehicles.
Use of Personal Vehicles
Insurance policies for privately owned vehicles may not cover damage to your privately owned car or truck when it is used for business, even home cosmetics, jewelry sales or a pizza delivery business.
Contact Supino Insurance at 781-322-2800 to add Hired/Non-Owned Automobile coverage to your business insurance package.
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