Business auto insurance policies cover liability associated with vehicles listed on the policy. However, a business often has liability for other vehicles as well, such as those which are borrowed, rented, or employee-owned. For each of the following examples, would a business auto policy provide protection, considering the vehicles are not listed on it?
- A key vehicle breaks down in the midst of a high-demand schedule. You borrow a vehicle from another business for a few days to fill in the gap. During that time, your driver causes an accident in the borrowed vehicle.
- An employee is instructed to pick up supplies. They hop into their personal vehicle and, while enroute, cause an accident. Since they were driving on company time, both the employee and the business are sued.
- The owner of a business flies to a trade show and rents a car. At the show, he is involved in an accident. Since it was a business trip, the business is found liable.
These scenarios are more common than one might think. However, a business auto policy can be written so as to include such liability.
Hired and Non-Owned Liability
The meaning of the word “hired” encompasses any time a business may pay for the use of another vehicle. Examples include a temporary rental to replace a vehicle under repair, a rental while away from the business on travel, or any other time a business may pay for the use of another vehicle.
Non-Owned vehicles can be borrowed or employee-owned, while driven on the business’ behalf. Salesmen driving to appointments commonly utilize personal vehicles as do employees while attending a training class.
How Much Does It Cost?
Pricing depends upon your industry and operations. A small business that does not regularly rent or borrow vehicles, costs are quite affordable and may be as little as $200 a year. However, the larger a business and the more often it utilizes hired or non-owned vehicles, price increases in proportion.
Physical Damage
Hired and Non-Owned liability coverage does not pay for the physical damage to the vehicle but some policies allow it to be added.
Questions regarding hired and non-owned auto liability insurance? Contact your Bankers Insurance agent. Not a client of ours? Let us earn your business! Each client is assigned a personal agent in our office, given their email address, and provided a phone number that rings right on their desk.
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