non owned auto insurance

The Facts Your Business Needs About Non Owned Insurance

When it comes to business vehicles, if you don’t have the right insurance coverage, you may be liable for expenses from accidents out of pocket. Find out when you may need non owned insurance.

What Is Non Owned Insurance?

Non owned auto insurance will cover liability expenses that involve business vehicles that your company does not own. This may include rentals or an employee’s personal car, used for errands. For example, say that you have an employee that needs to drop off a business deposit or make a delivery for the company. The employee uses his or her personal vehicle and in the process is in an accident.

The other driver may sue your business for expenses related to the accident. In this case, if you don’t have non owned auto insurance, you may be paying out of pocket for these types of damages. In addition, a company may rent trucks or vans for transportation or hauling cargo. In this case, specific insurance is necessary.

When to Purchase Non Owned Insurance

If your business rents vehicles or if your employees use their personal vehicles to run business errands, then you may still be liable if there is an accident. Even if your employee has personal auto insurance, it may not cover the accident due to business driving.

Non owned auto insurance is crucial when you use vehicles for business that you don’t own.