Most staffing agencies require that employees use their own vehicles for work-specific purposes, and a basic business auto insurance policy will only cover employees while they are operating company-owned vehicles. If you have a sales force that regularly goes out on sales calls using their own vehicles or employees run errands or perform other tasks in something other than a company owned car then you should have non owned auto insurance for your business.
Did you know that if one of your employees gets into an accident and you’re not properly insured that your business can be held accountable and sued for damages? By definition, a non-owned automobile is a vehicle that you or company does not own, lease, hire, or rent that is used to perform business activities.
In most cases we’re talking about an employee-owned vehicle driven by the employee on company business. And any time an employee uses a personal vehicle to perform tasks on behalf of your business, the business will likely be held liable. While an employee’s personal automobile insurance should cover most claims related to using his or her auto for business purposes, some insurance companies exclude business use from coverage.
And even if an employee’s personal auto policy provides coverage, a gap exists if the personal auto policy excludes business use or if the employee’s auto insurance limits are not sufficient. The fact remains that you’re going to need coverage that will cover claims that exceed the limits of the employee’s personal auto policy, or you have to provide a policy for when the employee’s auto insurance excludes business use.
Non-owned auto insurance protects your company if you are sued as a result of an automobile accident that you or your employee has in a personal vehicle while on company business. It covers bodily injury and property damage caused by a non-owned vehicle being used to perform activities for your business. Speak to your agent about this valuable coverage option so that you have protection in place in the event that this scenario takes place.