There’s a lot that goes into running a business, and sometimes errands and such might require your employees to go mobile and drive. If your employees ever have to drive their own personal cars for business use, you could be opening up your business to risk. Sure, your employees are good drivers and you don’t feel the need to grab a crash helmet knowing they share the roads with you.
But still, if your employee ever gets into an accident while driving their personal car for your business, your business could be open to liability. That’s where hired and non-owned liability can help you. We’ll explain what this coverage is and explain some of the reasons you might want to consider it.
What is hired and non-owned auto insurance?
To put it in a nutshell, hired and non-owned auto insurance can protect your business if one of your employees is driving a car that your company does not own for business purposes – for example, if they’re driving their own car – and they get into an accident that causes bodily injury or property damage.
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5 reasons to consider hired and non-owned auto insurance.
What if an employee is driving their own car to drop something off to a client and they get into a serious accident on their way there? Your business could be on the hook. There are a number of compelling reasons to consider hired and non-owned liability insurance if you ever hire vehicles or if your employees drive their personal cars for your business (for example, for client visits, product deliveries, product pickups, and so on.)
Hired and non-owned insurance can provide…
1. A way to respond to liability claims.
As we mentioned above, your business could be held liable if an employee is driving their personal car for business purposes when they get into an accident. Hired and non-owned auto insurance can help you transfer that risk from your business to your insurance so that you can cover the costs if your business ever encounters a liability claim like this.
2. Reimbursement for legal costs.
Well, lawsuits are kind of a big deal. They can be financially draining for small businesses, but hired and non-owned auto can help you cover the legal expenses following a claim if an employee gets into an accident and you get sued. The legal expenses of a lawsuit can add up very quickly, and those expenses can hurt your business financially.
3. Protection for your business for all types of employees.
Your hired and non-owned auto insurance can cover your business if you have full-time or part-time employees who use their personal cars for business use. It can even cover you if you hire extra, temporary help during busy times of the year. So, if you have part-time or temporary employees, you could get them covered as well.
4. Coverage beyond your basic insurance policies.
General liability insurance and commercial auto insurance are both very valuable coverages for your business, but they might not offer the right protection for this particular situation. In fact, coverage for employees using their own cars for business use might be specifically excluded. But with hired and non-owned auto insurance you can have the coverage to protect yourself.
If you have hired and non-owned auto insurance, you aren’t limited to only having your employees drive vehicles that your business owns when they’re on the job. They can drive their own cars. And you may also have coverage if you want to allow your staff to rent cars while they are on business trips. Bottom line, your employees aren’t limited to just driving vehicles that your company owns in order for your business to be covered.
So, that’s how hired and non-owned auto insurance can protect your business. Your business might not own any vehicles, which means that your employees might have to drive their own cars as they run errands for your business. It’s important to make sure that you have the right coverage for your business – or risk ending up on the receiving end of a big liability lawsuit. Hired and non-owned auto insurance can help you protect your business.
If you’re interested in getting quotes for your business, we can help. Our agents will help you get the insurance that’s right for your business so that you know you’re protected from all of your risks. Get in touch with us by filling out our online quote form or giving us a call today.