Driving Risk: When Employees Run Business Errands
Have you ever sent an employee out to pick up needed supplies? Offered to buy lunch for the crew and asked an employee to pick it up?
Unless you only send employees who are insured and drive your company vehicles, you may be putting your business at risk. Your business may also incur liability during travel on company business, traveling to meet a client, or for other business-related purposes.
If there is an accident that causes damage to a third party and the driver’s insurance doesn’t cover the full costs, your company may be sued to recover the excess amount.
Employees who use their personal cars are generally required by law to have insurance BUT…
Unless you hired them as drivers, you probably have no idea how much insurance coverage workers actually carry — or even if they have insurance at all. Worse yet – some commonly issued personal policies EXCLUDE business use.
The good news is that there’s a simple and relatively inexpensive solution: a non-owned auto insurance policy. This type of policy protects your business if an employee gets in an accident and causes damage while running a company errand using an auto you don’t own. .
Keep in mind that non-owned auto coverage generally doesn’t cover the driver, the purpose is to protect the organization. And, non-owned auto insurance generally does not function as primary insurance; it is designed as excess liability protection.
In other words, if your worker causes damage or injury in an accident while driving a personal car on company business, their own insurance would generally pay first. But if the liability exceeds the amount of the employee’s coverage, non-owned auto insurance would protect your business for damage costs not covered by their coverage – but NOT the driver.
The bottom line
Liability claims caused by vehicular damage can run into the very large numbers.
Your business could be at risk if an employee has an accident while using their personal auto in the course of your business. Never rely solely on the driver’s personal auto insurance. Non-owner auto insurance can provide peace of mind and vital protection.
Call us, we can help.