If you operate a business and have staff who may drive their own cars to conduct company business such as attending conferences, meeting with clients, or running errands your company could be liable if these employees are involved in an accident. Non owned auto insurance may cover liability for accidents in certain situations.
Personal Insurance May Exclude or Limit Coverage
An employee’s personal insurance policy may limit its coverage to situations when the vehicle may be used for personal use. Therefore, if an accident occurs while an employee is conducting business for your company, his insurance provider may deny coverage for any or damages injuries to the other party. Some personal policies may provide coverage up to a certain limit, but damages and injuries could exceed that limit. The liability could then be passed on to the employer if the employee’s purpose for driving the car at the time of the accident was to conduct company business.
Unless you have non-owned auto insurance, your company could be required to pay for damages, injuries and legal fees from its own funds. A serious accident or an accident involving multiple vehicles could be very expensive for a large company and catastrophic for a small business. Adding non-owned auto coverage to a commercial auto or general liability policy can give you the peace of mind and protection that you need.