Regardless of the industry you operate in, it’s likely your employees need to operate vehicles for tasks like client visits, product deliveries, and product pickups. While larger organizations often provide insured company vehicles to their staff for daily use, small and medium-sized business often don’t have that luxury.
If employees use personal vehicles for business-related activities and get into an accident, your organization could be held liable. That’s why it’s critical to have non-owned auto liability insurance, which can provide the following benefits:
- A response for liability claims. If employees get into an accident while using their own or a rented vehicle for business purposes, non-owned auto liability policies transfers the risks to your insurer. However, it’s important to remember that this coverage protects your business and not the employee driving the vehicle.
- Legal cost reimbursement. If your employees get into an accident and the business is sued, legal costs can add up quickly. Non-owned auto liability policies help organizations cover legal expenses following a claim.
- Protection that accounts for employees of all statuses. Hired and non-owned liability policies can provide coverage for all of your staff, regardless if they are full-time, part-time or temporary employees. This is particularly useful for organizations that hire additional staff during busy periods.
- Coverage beyond basic policies. If your organization allows employees to use personal vehicles for work, chances are your general liability and auto policies offer insufficient protection. Non-owned auto insurance offers unique coverage often excluded in standard policies. This ensures your organization isn’t held accountable following an accident.
- Flexibility. Without non-owned auto coverage, your organization is limited to providing insured company vehicles to employees. However, with the right policy, your organization can allow staff to rent cars on business trips or use personal vehicles for work.