There are many reasons why businesses purchase non-owned auto insurance. Staffing agencies often enlist full-time and temporary staff to use their own vehicles during work situations that present a potential for those in charge to be held accountable for the actions of those employees while they are driving their own cars. For example, having administrative employees use their own vehicles to go to the post office or bank on the company’s behalf.
Something simple like deciding to send employees to pick up lunch, drop off mail or pick up office supplies and then they end up being involved in an injury accident can have devastating consequences. If you have you ever rented a vehicle while on a business trip, or have a sales force for which you provide a car allowance for business use of their personal vehicles, you need to be insured in the event they cause property damage to another individual.
Other examples related to non-owned auto
If an employee has an accident under any situations, while on the clock, your business can be held accountable and sued for damages. Basic business automobile policies only cover employees while they operate company owned vehicles to perform company business. Therefore, the best protection available in a scenario such as this is non-owned and hired automobile liability coverage. This type of coverage will kick in whenever there is an accident and your company is found legally liable. Typically, an employee’s personal automobile insurance will provide primary insurance to both the employee and the business if the employee is using their own vehicle on company business.
However, there is always the chance that charges will exceed the employee’s policy limit and would then be passed on to the company. Without non-owned and hired automobile liability coverage you may be vulnerable to a potentially costly exposure. This insurance covers bodily injury and property damage caused by a vehicle you hire (including rented or borrowed vehicles) or caused by non-owned vehicles. This coverage is typically added to your business automobile policy but it can be added to your general liability policy if there is no business automobile policy in place. Having non-owned auto insurance is highly recommended for staffing companies that often put employees on the road as part of their regular routine.