We all know that obtaining automobile insurance for the vehicles that you own is important. However, as a business owner, it isn’t just your vehicles that you have to worry about.
There are often occasions where your employees may use their own personal vehicle for business-related tasks. If an accident occurs while this is happening, you could be hit with a costly lawsuit. That’s where non-owned automobile insurance comes in.
When an employee uses their own personal vehicle on your company’s behalf, there’s always the risk of an accident occurring that causes property damage or bodily injury to a third party. Non-owned automobile insurance provides peace of mind in the form of liability coverage to protect against costly lawsuits that your business may face as a result of this.
It doesn’t matter what industry you’re in, or if your organization is big or small – if there’s a chance that your employees may use their own vehicle for business related activities, then non-owned automobile insurance is a must!
Below are a few examples of situations that may give rise to a non-owned automobile claim:
When looking at their insurance needs many business owners only think of the liability risk associated with their own vehicles. The problem with this way of thinking is that they can be on the hook for costly lawsuits if damages occur as a result of their employees using their personal vehicles for the business as well.
Yes! It’s important that you have non-owned automobile insurance even if you’re sure that your employees have vehicle liability insurance of their own. The world is becoming increasingly litigious and liability claims as a result of automobile accidents are getting more and more expensive. These increasing claim costs may result in your employees being underinsured. If an accident occurs while the employee is using their own vehicle to perform business related activities, and the liability limit that they have chosen is less than what is needed to cover the costs of the claim associated with said accident, then you could be on the hook for the remaining amount of these potentially very expensive claims. It’s important to obtain non-owned automobile insurance to protect against this.
Like most insurance policies, there’s no set answer to this question. Insurance premiums depend upon liability factors such as claim history, revenues, exposure to risk, and much
more—non-owned automobile insurance is no exception. In some cases insurance companies will include non-owned automobile insurance
coverage as a part of their commercial general liability package without additional charges. However there are insurance companies that will either charge increased premiums to add this coverage or exclude it completely if the company has an increased non-owned automobile liability exposure (eg. A restaurant where the employees deliver food using their own vehicles).
Here are some real world examples of situations that may cause a non-owned automobile liability claim to arise: