Why is Non-Owned Automobile Insurance Coverage Important?
Are you aware of the potential liabilities your company could encounter from employees using their personal vehicles for work-related tasks?
Numerous circumstances could lead to your company being held accountable for incidents involving employees driving their personal cars or rental cars to perform company business tasks. This is where non-owned automobile insurance can provide additional protection.
What Is Non-Owned Automobile Insurance Coverage?
Non-owned automobile insurance assumes that the vehicle is not owned, registered, or contracted in your name or on your behalf. It provides protection when employees occasionally have to drive their own personal vehicles for business purposes.
How to Know if You Require Non-Owned Automobile Coverage
Understanding the need for non-owned automobile coverage can be critical for protecting your business against unexpected liabilities. To determine if this type of insurance is necessary for your operations, consider these scenarios:
- Are team members required to visit clients or project sites for assessments or updates?
- Do you ever rent vehicles when an employee is on a business trip?
- Do you send employees to pick up a customer from another location?
- Do staff members need to make trips to suppliers for urgent procurement of materials or equipment?
- Is it part of an employee’s duties to handle emergency maintenance or support calls that require travelling to different locations?
You require non-owned vehicle insurance if you answered “yes” to any of the above and don’t have a company-owned vehicle.
Basic business automobile policies typically extend protection only when employees operate company-owned vehicles for business-related activities.
Non-owned automobile insurance fills this gap, offering insurance protection when employees use their personally owned vehicle or rental car for work. This insurance protects your business against potential financial and legal liability associated with such activities.
What Does Non-Owned Auto Insurance Cover?
Should your employee get into a non-fault or at-fault accident, a non-owner auto insurance policy would cover:
- Bodily injury
- Property damage
- Uninsured/Underinsured motorist protection
- Medical payments
How Does Non-Owned Vehicle Coverage Differ From a Personal Auto Insurance Policy?
Non-owned auto coverage is different from personal auto insurance because it protects businesses from being held responsible for accidents that happen when employees use vehicles not owned by the company for work.
Typically, if an employee uses their own car insurance, it may not cover incidents that occur while the vehicle is being used for business activities, leaving a significant gap in coverage.
If an employee’s personal auto policy lapses or doesn’t provide coverage for business use, the non-owner insurance will provide appropriate coverage.
What Is Hired Auto Insurance Coverage?
Hired automobile insurance provides liability protection when you or an employee drives hired, rented, or borrowed vehicles. Hired automobile coverage replaces or augments the liability and physical damage coverage offered by automobile rental agencies.
Get Aligned With Appropriate Insurance Coverage with ALIGNED Insurance
Understanding the intricacies of insurance can be difficult, especially when it comes to protecting your business from unforeseen liabilities associated with non-owned vehicles.
At ALIGNED Insurance, we specialize in helping businesses like yours get comprehensive coverage tailored to meet the unique needs of your business. Whether your employees use their own vehicles for company errands or you frequently use a borrowed vehicle for business travel, our non-owned automobile insurance coverage is designed to offer you peace of mind.
To learn more about how non-owned automobile liability insurance coverage can protect your business please contact us to speak with an ALIGNED insurance advocate. Or, get your quote today!
