Whether you have a fleet of company vehicles or own just a single van for deliveries, you need auto insurance for your business. Yes, of course you need to cover vehicles your company owns, but why would you cover vehicles that don’t even belong to your company? Why does non-owned auto insurance even exist? I'm always glad when you ask questions that I'm about to answer!
But first, what is non-owned auto insurance?
Non-owned auto insurance extends your business auto liability policy to include your employees’ automobiles – which means that they are covered if they get in an accident while performing a work errand using their own vehicle. For example, if an employee runs out to pick up the cake and balloons for your office birthday party and gets in a fender bender, your non-owned auto insurance would cover the damage to the other vehicle plus bodily harm to any parties involved in the accident. Usually, the employee’s vehicle repair isn’t covered by your non-owned auto insurance because it would be covered under the employee’s car insurance policy.
Why is non-owned auto insurance important?
Your company can get sued for accidents caused by vehicles that the company does not own. How often does one of your employees use their own car for work-related tasks? From dropping off a package on the way home from work to scooping up a client from the airport and picking up office supplies, we’d bet it’s pretty often. Even if your employees have good driving records, accidents happen. That’s why you may want to think about “non-owned” auto insurance for your business.
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