Many business owners assume they’re covered anytime driving is involved. Unfortunately, that’s not always true. When employees or owners use personal vehicles for business purposes, your company could be exposed to serious financial risk. That’s where Non-Owned Auto Coverage comes in.
Non-Owned Auto Coverage provides liability protection for your business when a vehicle you do not own is used for business activities. This includes employees, partners, or volunteers driving their own cars while working.
Coverage typically applies to:
Bodily injury to others
Property damage to third parties
Legal defense costs related to lawsuits
Even if an employee has personal auto insurance, their policy usually protects them, not your business. If an accident happens while they’re working, the injured party may sue your company, claiming the business is responsible.
Without non-owned auto coverage, your business could be forced to pay legal costs and damages out of pocket.
Non-owned auto claims can occur in everyday situations, such as:
Driving to a client meeting
Picking up tools or supplies
Running business errands
Traveling between job sites
Using a personal vehicle for deliveries or sales calls
If the trip benefits the business, liability can fall on the business.
Most personal auto policies:
Restrict or exclude business use
Carry lower liability limits
Do not cover the business entity
When damages exceed an employee’s policy limits—or coverage is denied—the business may be left exposed.
An auto-related lawsuit can threaten:
Business income and cash flow
Equipment and property
Personal assets for sole proprietors
Non-Owned Auto Coverage helps protect what you’ve worked hard to build.
Non-Owned Auto Coverage is typically inexpensive and can often be added to a general liability or business owner’s policy. For many businesses, it’s a small cost that provides significant peace of mind.
If anyone drives a personal vehicle for your business—even occasionally—non-owned auto coverage is a smart and necessary safeguard. It fills a critical coverage gap and helps protect your business from unexpected liability.
Have questions or want to add this coverage? Contact us today to make sure your business is properly protected.