How To Ensure Total Business Auto Liability Coverage

When considering the option of adding non owned auto insurance to your commercial liability plan, it is important to read the fine print of your business auto policy. If you believe your coverage is sufficient, you could be making a dangerous assumption. Did you know:

  • A typical business auto insurance policy does not cover damages or personal injuries that may result from an accident involving a personal or hired car driven by an employee? Standard business auto policies only extend such coverage to company-owned vehicles.
  • A staffing organization is responsible not only for the actions of its own employees but, often, for those of employees placed within a client company? If your firm typically enters into a co-employment contract with the client company, you may be liable for automobile accidents that occur while employees of that company are driving personal or rented vehicles.

Non owned auto insurance is designed to fill the gap in your business auto coverage. Typically, protection extends to any vehicle used by an employee (or an employee under a co-employment agreement) during the course of business. Personal and hired vehicles are included in the plan. Under the specific terms of the policy, coverage includes the payment of:

  • Legal fees incurred to defend a lawsuit
  • Injuries and/or damages caused by an accident

Don’t assume your standard policy provides the coverage you need. Consult an experienced agent or broker today about adding non owned auto insurance.