When Commercial Auto Insurance Isn’t Enough

Businesses that own vehicles, whether it’s one or a fleet, know that they need commercial auto insurance to protect them against loss and liability. However, if cars not owned by the business are used by employees to carry out work-related duties, the commercial automobile policy may leave coverage gaps.

A hired non-owned auto policy can provide the necessary additional protection. Small businesses often have employees run errands, meet with clients and attend conferences using their own vehicles. If there is an accident during this time, the commercial auto policy doesn’t apply. The employees private auto insurance may cover business use, but if the costs soar above their coverage limits, liability passes to the employer.

There is a notable exception to the standard coverage. If the employee’s vehicle is carrying goods or people for a fee, such as pizza or flower delivery, car service, etc., the individual policy will likely not cover damages, loss or injury. A hired/non-owned vehicle liability policy covers:

  • Defense costs
  • Liability claims
  • Actions of full-time employees and temporary staff

If your employees pick up lunch or supplies for the office and there is an accident, you could be held liable. Insurance professionals specializing in commercial insurance can help you get a hired non-owned auto policy that gives you the coverage you need.