Does Your California Business Liability Insurance Protect You If Your Employee Runs An Errand For You?
Have you ever had your employees run errands for you in their cars? Did you even think about what would happen if they got in an accident while running that errand? You need to know if your company has protection in case of an accident and both your worker and your company are sued. A business auto policy should include coverage for ‘non-owned’ vehicles. These are cars owned by others, (ie. employees) that are used for the business of the company. Generally a California business liability auto policy only protects company-owned vehicles, so it is important to add “non-owned” vehicle coverage so there is not a gap in coverage.
You also need to consider whether the amount of non-owned coverage is sufficient. The limits of coverage should be high enough to protect both your business and the employee. If you include ‘non-owned’ auto liability coverage on your business policy you will provide adequate coverage for the business if there is any lack in limit from the employee’s personal auto policy. This coverage is for the BUSINESS only, not the employee.
If your company does not own any vehicles, it is possible to buy business auto liability coverage to protect your business from the danger of a loss involving ‘hired and non-owned’ vehicles. The ‘hired’ portion would cover business travel and car rentals; the ‘non-owned’ portion would cover employees using their own cars in the business. This is a wise option to consider.
Remember, even if you rarely use “non-owned” autos in your business, it only takes one serious accident to create a significant loss for your business. Talk to your insurance agent about this very important California business liability insurance coverage.
Source: Insurance Publishing Plus
