Business Owners who purchase vehicles in the name of the business need to be careful that they are properly insured and that they carry high enough liability limits to protect their operations. Hired and Non Owned Automobile Liability coverages are a must for most business owners. It provides Automobile Liability to a business or social service organization when a vehicle must be hired or borrowed to conduct business. The most common scenario is when employees use their own vehicles on behalf of the business. Hired and Non Owned Auto Liability will protect the business while the employee is driving their own vehicle (i.e. sales or service call, running errands, client home visits etc.). Many of our clients (employers) get confused because they make sure that every employee they hire provides proof of their personal automobile insurance.
The problem is this: if their employee is involved in an at – fault automobile accident, the injured party could go after the employee personally as well as the business for damages.
We recommend no less than $1million coverage. Your attorney and Accountant can also assist you in determining the amount of liability coverage.
If your operations require that employees use their own vehicle to transport others, please contact our office. It is imperative that both the employee and the employer carry high enough automobile liability limit.
Make sure to keep properly screen employees and volunteers who are likely to operate their own vehicles on behalf of your business. Evaluating a driver’s accident history and driving record can ensure there are a minimal number of non-serious auto accidents. Our insurance carriers can assist you with Loss Control information.