Risk Management: Non-Owned Auto

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It is common for nonprofit organizations to have their employees or volunteers drive their personal autos for business-related purposes. This however provides the organization with additional liability exposures. In the event your employee or volunteer is in a car accident while using their personal auto on your behalf, your organization can be held liable. Although California law requires employees to carry personal auto insurance, the injured party can pursue a claim against your organization.

Below are some risk management tips if your employees or volunteers use their personal vehicles on your organization’s behalf:

  • Written driver policy signed by the individual driver
  • Obtain a copy of employee’s current driver’s license.
  • Require proof of personal auto coverage and get updated copies at policy renewal.
  • Run annual motor vehicle record check or use the California DMV pull program
  • Purchase a non-owned auto policy for your organization.

If your employees or volunteers drive their personal vehicles on your organization’s behalf, you should consider purchasing a non-owned auto policy. Non-owned auto coverage can be added to your business package policy, business auto policy, or purchased as a standalone policy. Non-owned auto coverage applies when the damages exceeds the limits of the employees’ personal auto insurance or where their personal auto carrier denies the claim. A non-owned auto policy will provide liability coverage for your organization.

Let us know if you have any questions regarding non-owned auto liability or would us to provide a quote. We are here to help.

This is intended for informational purposes only and not to be construed as legal advice.